According to reports, the Karnataka legislative assembly passed a bill that will open the door for the establishment of a gig worker welfare fund. The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2025, seeks to create a welfare board and safeguard workers’ rights, according to news agency PTI.
Additionally, it imposes new duties on aggregators concerning the safety, occupational health, and social security of their employees. According to reports, state labour minister Santosh Lad stated during his speech in the parliament that the bill suggests a welfare cost of 1% to 5% for every transaction, which will be subtracted from the worker’s compensation. The cost will fluctuate depending on the type of aggregator.
Welfare Fund and Aggregator Contributions
These revenues will be combined to create the welfare fund, which will also receive gifts, donations, transfers, and grants-in-aid from the state government. A welfare fee of 1% to 5% of a gig worker’s compensation will be collected, Lad added. This cannot be applied universally because e-commerce and the operations of Swiggy and Zomato are not the same.
They are various business types. Therefore, 1-5% will not be applied uniformly to all. “While establishing the regulations, we shall debate and make a decision,” Lad added further. According to the report, the bill will also require gig workers to register with the planned welfare board and provide for openness in dispute settlement procedures.
Rights and Protections for Gig Workers
The Hindu claims that the board will also decide on worker safety measures, health card issuance, and other social security matters. Furthermore, the bill allegedly places the responsibility for offering gig workers stable incomes and decent working conditions on app-based platforms. According to PTI, Lad cited the Bill and stated that a gig worker cannot be fired without giving 14 days’ notice and a written justification.
Background and Ordinance History
This comes four months after intentions to create a gig worker welfare board were revealed by the Karnataka chief minister’s office. The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025, was subsequently issued by the state government in May.
Since the issue was deemed “urgent” since neither chamber of the state legislature was in session, Governor Thaawarchand Gehlot introduced and approved the ordinance. It is important to remember that the state administration published a draft of the same measure last year, which included provisions for income and social security as well as other advantages.
Quick
Shots
•Funded by a 1–5% welfare fee on each
transaction.
•Contributions vary by business type
(e-commerce, food delivery, etc.).
•Additional funding through donations,
transfers, and state govt grants.
•Ensure worker safety, occupational
health, and social security.
“Faulty auto translation of Kannada content on Meta platforms” has drawn harsh criticism from Karnataka Chief Minister Siddaramaiah. This comes after Meta’s automatic translation engine mistranslated a Facebook condolence message from the chief minister’s office and pronounced Siddaramaiah deceased.
Originally composed in Kannada to lament the passing of legendary actor B. Saroja Devi, the post was incorrectly translated into English, resulting in criticism from Siddaramaiah and a formal letter to Meta. The chief minister claimed on social media site X that inaccurate Kannada content auto-translation on Meta platforms is confusing users and misrepresenting the facts.
This is particularly risky when it comes to official correspondence. Siddaramaiah also emphasised the need for social media companies to behave properly. Additionally, he warned the public that the translations displayed are frequently incorrect. Such carelessness on the part of tech behemoths can undermine public confidence and comprehension.
Letter from CM’s Office to Meta India
K V Prabhakar, the CM’s media advisor, publicly wrote to Meta after the public remark, requesting prompt remedial action. The state administration has expressed worry about the many inaccuracies and, in certain instances, egregious misleadingness of the auto-translation from Kannada to English, according to Prabhakar’s letter to the Meta India team.
This presents a serious risk, particularly when official declarations, public communications, or crucial messages from the government and chief minister are mistranslated.
Meta Expanding its Support to Indian Languages
The occurrence of this incident coincides with Meta’s efforts to increase the number of Indian languages supported on its platforms and services. The platform has added Hindi and Hindi-Romanised script to its list of accessible languages for its Meta AI helper.
Meta has also improved its ability to fact-check text in a number of Indian languages. In order to incorporate languages like Telugu, Kannada, Malayalam, Tamil, Kashmiri, Bhojpuri, Oriya, and Nepali into its fact-checking programme, it has partnered with organisations and extended its current alliances.
Meta’s Trouble with AI Continues
The SuperIntelligence Lab at Meta, established to further the company’s AI goals, is at a turning point. The business is now reevaluating the same tenet that brought it recognition for transparency and innovation acceleration.
Previously, it set itself apart from covert rivals like OpenAI, Anthropic, and Google by openly disclosing its most potent AI models. Alexandr Wang, the former CEO of Scale AI, was recently named Chief AI Officer by the business, which also announced plans to invest hundreds of billions of dollars in large AI supercomputing clusters called Prometheus and Hyperion.
Sources familiar with the company’s discussions claim that these actions have successfully eliminated internal opposition to limiting model access. Chinese AI labs have jumped at the chance to assert leadership in the open-source AI space as Meta re-examines its open strategy, potentially creating a long-lasting edge in the global AI infrastructure.
According to reports, the Karnataka government intends to join the Center-led IndiaAI Mission by launching a specialised AI mission. As GenAI becomes more widely used, it is necessary to control its use and establish a framework, according to a media article that quoted Karnataka’s minister of electronics, information technology, and biotechnology, Priyank Kharge.
In order to create a distinct framework for AI, Kharge continued, the state is currently considering including the new policy into the next Karnataka IT policy 2025–2030. At the Bengaluru Tech Summit in November, the state intends to introduce its new IT policy. Over a million techies and one lakh AI specialists call Karnataka home.
The state’s AI Workforce Impact Study, which aims to explore how AI automation is affecting the workforce and what skills people should prioritise for the future, was launched shortly after the AI framework policy talks.
Karnataka Fostering Matured Startup Ecosystem
Conversely, Karnataka boasts one of the most developed startup ecosystems in the nation, as Bengaluru-based AI startups secured $872 million in funding over the past five years, according to India’s AI Uprising: GenAI, AI Agents & The Future Of Startups, Report 2025.
A Centre for Applied AI for Tech Solutions (CATS) would be established with an investment of INR 50 Cr over the next five years, in addition to the INR 100 Cr corpus for deep tech businesses that the state of Karnataka announced in this year’s budget. With more than $2 billion in financing, Bengaluru was the most well-funded startup cluster overall.
The Centre is already on track to promote the creation of domestic AI models in the nation under its IndiaAI mission, which has an expenditure of more than INR 10K Cr, even though Karnataka plans to create its own AI mission.
The Centre-led initiative to develop indigenous LLMs in India has already shortlisted GenAI firms SarvamAI, Gnani.ai, and Soket AI. This will also boost India’s GenAI sector, which is predicted to grow to a $17 billion opportunity by 2030.
India’s AI Roadmap
The government is providing investment funds and other forms of support to firms like Sarvam, Gnani, Gan, and Soket AI Labs in order to encourage the development of LLMs as part of India’s AI goal. More LLM-developing applications that will receive GPU access or grants will shortly be announced by the IndiaAI Mission, according to various media reports.
With a plethora of ideas under the IndiaAI Mission centred on creating large language models (LLMs), India’s push to become a leader in artificial intelligence (AI) is gathering steam.
According to a media report that quoted Sunil Gupta, CEO of Yotta Data Services, the country’s strategic commitment to autonomous and culturally relevant AI is demonstrated by the 43 proposals out of 506 that the India AI Mission received for the development of foundation AI models that are explicitly devoted to creating LLMs.
As it negotiates with app-based service providers to ascertain the percentage of fees that the platforms must pay, the Karnataka state government intends to operationalise the gig workers’ welfare fund in August.
With a request to issue an ordinance, the government has forwarded to Raj Bhavan the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill 2024. “By the end of August, we hope to put the law into effect,” Labour Minister Santosh Lad stated. In preparation for the creation of draft regulations under the proposed law, his agency is presently consulting with stakeholders.
The regulations will propose varying fees for services including food delivery, ride-hailing, and online shopping. Stakeholder input and government studies will inform the final regulations.
According to the government’s present position, the rate needs to be commensurate with the size of net earnings. Lad clarified that the welfare fee would be determined by service (delivery) charges rather than turnover.
20 Rounds of Meeting Already Conducted
According to the minister, there have been roughly 20 rounds of meetings so far, and all parties are in agreement over the welfare of gig workers. Platforms would be required to pay the fund a charge that ranges from 1% to 5% of the commissions paid to platform and gig workers.
The fee is limited to 5% of the commission by the Social Security Code. Additional Labour Commissioner G. Manjunath stated that the labour department is also investigating the probable effects of the suggested cost on consumers.
An estimated 2.75 lakh gig workers in Bengaluru work in a variety of sectors, such as food delivery, e-commerce, and ride-hailing. After AICC head Rahul Gandhi approved the policy’s general outline last month, the government decided to follow the ordinance route.
Karnataka has hailed its proposed legislation as a rights-based bill that seeks to safeguard the rights of platform and gig workers.
Karnataka to Follow Rajasthan’s Path
After Rajasthan became the first state to enact legislation for platform workers in July 2023, Karnataka developed the bill last year. However, the state has not yet created any regulations.
According to the minister, after the law is put into effect, Karnataka will be the first state to offer social programmes for gig workers. This welfare fund for gig workers is unique to Karnataka state. Additionally, the proposed regulation guarantees that platforms won’t fire employees arbitrarily.
Following Rahul Gandhi’s conversation with Chief Minister Siddaramaiah in Delhi last month, the topic gathered traction. After parts of the delivery, ride-hailing, and e-commerce platforms opposed the move last year, the government soft-pedalled the concept.
Karnataka IT-BT Minister Priyank Kharge is determined to establish Karnataka as a major esports hub as the southern state seeks to capitalise on the growing popularity of the industry nationwide. In his remarks at the Bengaluru GAFX 2025 conference on February 27, Kharge stated that the state government hopes to conduct its own National Esports Festival this year. He added that he plans to host the largest esports festival in the country and possibly Asia for our gaming community. He did not, however, provide any more information. Now in its sixth edition, the conference is hosted by the Karnataka government’s Department of Electronics, Information Technology, and Biotechnology in partnership with the nonprofit ABAI. Over 20,000 people are anticipated to attend Bengaluru GAFX 2025, which is aimed at the rapidly expanding animation, visual effects, gaming, comics, and extended reality (AVGC-XR) business. It is a three-day event from 27 February to 1 March. The top four esport teams in the nation from various regions are competing for the Counter-Strike 2 title in the conference’s final tournament for an esports national championship. The market research firm IMARC Group projects that the Indian esports industry would reach $919 million by 2033, expanding at a compound annual growth rate (CAGR) of 18.42% between 2025 and 2033.
Investor Connect Initiative- Part of GAFX 2025
According to Kharge, Bengaluru GAFX 2025 is also holding an investor connect program, where 50 AVGC-XR firms are interacting with more than 25 top investors who are providing finance and mentorship opportunities. Karnataka is taking these steps in an attempt to take the lead in this field, but other states like Tamil Nadu, Telangana, Maharashtra, and Kerala are becoming more and more competitive. Additionally, Kharge wants the state to play a significant role in India’s aspirations to dominate the world in this field. “In addition to contributing to international projects, our professionals are spearheading them by bringing their distinct viewpoints and unparalleled experience to the fore,” he said. Indian artists play a key role in providing innovative visuals for both local and foreign films in the fields of animation and visual effects. “Our efforts have received praise from all over the world, establishing India as a centre for top-notch VFX and animation services,” he added.
How State’s AVGC-XR Policy can Benefit Karnataka
In order to promote international cooperation in Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR), the Karnataka government is also forming a Global Innovation Alliance (GIA) that will bring together France, Australia, the United Kingdom, Scotland, Uzbekistan, and Italy. An investment of INR 150 crore was set aside by the Karnataka government last year for its updated AVGC-XR policy for 2024–2029. The state administration hopes to create 50,000 jobs over the following three to four years with the strategy, which was initially announced in November 2023 and started in January 2024. By turning the state into a hub for AVGC-related capabilities, the government hopes to develop a talent pool and guarantee that exports account for at least 80% of the industry’s overall earnings. It is anticipated that the gaming industry will turn to the Centre of Excellence (CoE) for innovation, research, and development.
During her remarks at the event, Dr. Ekroop Caur, Secretary, Department of Electronics, IT, Bt, Science & Technology, Government of Karnataka, stated that an AVGC-XR Park is also being developed. It would provide research facilities, production studios, and incubation spaces. According to Caur, Karnataka is home to more than 15,000 experts and more than 300 AVGC studios. With 500 million players in India, Karnataka has the most gaming startups, making Bengaluru the centre for next-generation game development. The first of its type in India, Karnataka’s AVGC-XR fund provides up to INR 2 crore in investment support for startups and SMEs.
To boost the expansion of early- and growth-stage companies throughout the state, the Karnataka government unveiled two programmes: ELEVATE 2024 and the Karnataka Accelerator Network (KAN).
The initiatives, which were presented by Minister Priyank Kharge on October 28, 2024, demonstrate Karnataka’s dedication to developing a systematic startup support system and build on the state’s goal of being the startup hub of India.
Sharing his views on the development, Vishal Saurav, XBOOM Utilities said, “In India, forming a startup may just take 5 days but 5 years down the line 90% of them are either closed or struggling to survive. These staggering statistics show that there is an underlying problem which needs to be addressed immediately. Two major challenges that most of the startup’s face are proper guidance to make a plan and liquid funds to execute those plans. If we take technology industry for instance, the main problem that most of the startups face is the initial funding to start their journey which is much more visible if there is a physical product involved. Take an example of a Drone startup, the main challenges they face are initial liquidity which ranges from min 10 lakh to 1 Crore and lack of proper infrastructural support. “
“The Karnataka government’s ELIVATE 2024 and KAN initiative might just be the medicine that required as they are addressing those exact issues which were stated earlier. With more than 15000 registered startups to look out for, these initiatives have all the ingredients to become a big success story,” he added.
Sharing similar opinion, Abdul Jaleel, Co-founder of Aspirar Sphere Pvt Ltd said, “It is exciting to learn of the two new initiatives introduced by the government of Karnataka to aid the start-ups. This is an important development for the entrepreneurial ecosystem in our state. Karnataka has been famously known as a center of innovation and entrepreneurship, and with these on board, it further highlights its dedication towards enabling a thriving startup sphere. With the state government providing increased assistance and backing, not only are new ventures being encouraged to take shape but also a culture of creativity is being nurtured.”
ELEVATE 2024
The state’s premier seed fund programme, ELEVATE 2024, provides awards of up to INR 50 lakh for each firm. It seeks to foster innovation in cutting-edge fields like robotics, machine learning, artificial intelligence, and space technology. The Karnataka Startup Policy 2022-2027 also offers financial support for patenting, quality certifications, and incubation spaces at sector-specific Centres of Excellence throughout the state, all of which are advantageous to businesses. Applications are being accepted on the government’s startup site through November 29.
Sahil Chopra, VP, Growth & Marketing, Inflection Point Ventures stated, “ELEVATE 2024 will prove to be quite helpful for startups, offering critical support that will enable them to scale their operations effectively. Recognising innovation as the cornerstone of economic development, and with Karnataka emerging as a nexus for entrepreneurial activity, this financial backing represents not merely an investment in individual ventures but a broader commitment to advancing technology across the state. Complementing ELEVATE 2024, the Karnataka Startup Policy 2022-27 enhances the landscape by providing essential financial assistance for securing patents, obtaining quality certifications, and accessing incubation spaces. These initiatives significantly lower the barriers to entry for startups, granting them the freedom to concentrate on developing innovative solutions while refining their research, growth, and overall development processes.”
KAN
By connecting regional accelerators with those in Bengaluru, KAN, the Karnataka Accelerator Network, aims to support growth-stage entrepreneurs outside of the state capital. Over a three-year period, it facilitates resource access and knowledge exchange among six cohorts.
Through organised mentorship, networking opportunities, and funding paths, KAN aims to empower 302 businesses in collaboration with incubators in locations like Mysuru and Dharwad and accelerators like DERBI and Jain Launchpad in Bengaluru. The Department of Electronics, IT, BT, and Science & Technology, along with the Karnataka Digital Economy Mission (KDEM), work together to run the programme.
Minister Kharge emphasised the state’s aspirations by pointing out that Karnataka has become a global centre for startups, with 45 of India’s 112 unicorns based in Bengaluru alone. “We want to make sure Karnataka is one of the top three startup ecosystems in the world,” Kharge said. KAN and ELEVATE both provide organised assistance to help businesses grow, get capital, and bolster Karnataka’s position as a leader in innovation.
Bengaluru Tech Summit 2024 Event App
The government also introduced the official Bengaluru Tech Summit 2024 event app in conjunction with these initiatives, improving accessibility for speakers, exhibitors, and delegates. The app, which is accessible on both iOS and Android, highlights Karnataka’s emphasis on digital inclusion and accessibility for guests from around the world while promising a flawless experience during the event. ELEVATE has committed approximately INR 224.6 crore in investment to nearly 983 businesses since 2016.
Expanding Beyond Bengaluru
In order to support the establishment of start-ups around the state, the Karnataka government is actively promoting its “Beyond Bangalore” project. There are currently about 402 start-ups in the Mysuru cluster, 432 in the Bengaluru cluster, and 463 in the Hubli-Dharwad-Madagavi region. With 32 start-ups originating from Tier II and III cities and women leading 24% of state-funded start-ups, the government’s dedication to diversity is evident.
According to Kharge, initiatives like Innovate Karnataka, Ktech, and Startup Karnataka—especially the Elevate programme—have been instrumental in this expansion. Karnataka’s entrepreneurial environment has been further cemented with the state government’s funding of over 983 start-ups so far.
Karnataka, the southernmost state of India, intends to reduce taxes and provide financial incentives to companies in the clean mobility sector. This includes a substantial tax reduction for hybrid vehicles, which will be advantageous for Toyota, according to a draft document from the state government.
The state of Bengaluru, which is home to the tech hub, could become the second in India to offer tax breaks to hybrid vehicles, following northern Uttar Pradesh. Toyota has lobbied New Delhi for these incentives, despite the fact that India has primarily focused on exemptions for electric cars.
According to a draft seen by a media house, Karnataka, which has the third-highest sales of electric vehicles (EVs) in India, wants to eliminate road tax and registration fees for hybrid cars that cost less than $30,000 from their current 13% to 18%.
Applauding this move, Rajeev YSR, CEO, Thunder Plus stated, “Karnataka’s recent initiative to offer tax waivers for hybrid cars and financial incentives for electric vehicles marks a significant step toward advancing clean mobility in India. This proactive approach aligns with the state’s vision to promote sustainable transportation solutions while enhancing the appeal of both hybrid and electric vehicles. At ETO Motors and Thunder Plus, we are excited about this development, as it creates a favorable environment for the growth of the electric vehicle market. We already have 300+ electric 3 wheelers crisscrossing the busy roads of Bangalore adding 0 carbon emissions as they run; and are supported by 100+ electric vehicle charge points.”
No timetable was specified in the draft policy to finalize and announce the policy, but it stated that the state seeks to increase “clean mobility vehicle adoption,” which includes EVs, select hybrids, and hydrogen-based vehicles.
Rivals like Tata Motors and Mahindra & Mahindra, which prefer to maintain the emphasis on EVs and claim that incentives for hybrids will undermine India’s ambitions for their adoption, are in conflict with Toyota’s effort. Federal sales tax is 5% for electric vehicles and up to 43% for hybrid vehicles. State road and registration fees are additional costs.
Additional Incentives for Makers of Electric Vehicles and Their Components
Furthermore, as per the draft, Karnataka intends to provide incentives to manufacturers of electric vehicles or their components, with the amount of the incentives depending on the magnitude of the investment and the quantity used. The incentives may be as high as 25%.
According to the proposal, Karnataka is expected to provide financial incentives to companies that invest 15% to 25% of their profits in fixed assets, such as land and machinery, for the establishment of new factories or the expansion of existing ones. According to the draft, this will also apply to companies that manufacture battery parts or EV charging equipment.
The state government has already stated that it intends to use a clean transportation policy to attract up to $6 billion in new investments, but it has not disclosed any further information.
Tug of War Between the Indian States
In keeping with Prime Minister Narendra Modi’s focus on encouraging the use of such automobiles to reduce pollution and lower the cost of gasoline imports, Indian states are competing with one another in terms of investments and tax incentives to entice the EV business. In the fiscal year 2023–2024, India sold 4.2 million cars, of which fewer than 100,000 were hybrids and electric vehicles. The goal for India’s new car sales market by 2030 is to increase the proportion of electric vehicles to 30%.
According to a report presented by the Department of Electronics, IT, BT, and S&T, Government of Karnataka, 45 out of India’s 112 unicorns are based in Bengaluru, making it a leader in the startup movement. According to the Bengaluru Innovation Report 2024, the city is known as an innovation hub that encourages revolutionary developments in areas such as AI, biotech, and fintech.
The Bengaluru startup ecosystem is strongly supported by top IT businesses, research institutes, and capital allocators. It’s a place where collaboration and competition are encouraged. As a result, both the economy and technology are booming.
Over 14,000 startups registered with the Department for Promotion of Industry and Internal Trade (DPIIT) and over 4,000 active investors in tech startups call Karnataka home. According to Priyank Kharge, who is the minister for the Department of Electronics, IT, BT, Rural Development, and Panchayati Raj in the Karnataka government, the existence of 45 tech unicorns further solidifies the state’s image as a top hub for technology and innovation.
According to him, the state government has launched several programs to help entrepreneurs at different points in their development. Over 980 businesses have been awarded grants of up to INR 50 lakh through the Elevate program, which is an initiative that helps entrepreneurs go from idea to proof of concept. Women business owners and deep tech solutions are two areas that will receive enhanced attention in the coming future.
Initiatives That Are Driving the Growth
To address the wide range of startup funding requirements in the state, two funds have been established: the Beyond Bengaluru Cluster Seed Fund and the Kitven Funds. To support student-run initiatives, the NAIN program has set up around fifty innovation centers in IT institutions outside of Bengaluru. Beyond Bengaluru and the Karnataka Digital Economy Mission are two more important programs that are helping to make the state a center for information technology.
Major software companies like Amazon, Microsoft, Meta, and Google have their research and development centers in Bengaluru, according to Prashanth Prakash, who is a partner at the venture capital firm Accel and the head of the Startup Vision Group for the Government of Karnataka. According to him, businesses like Zerodha, CRED, PhonePe, Flipkart, and Razorpay—all unicorns—have emerged from the city.
Sahil Chopra, AVP, Growth & Marketing, Inflection Point Ventures satated, “A report from 24th July shows that Karnataka’s Department of Information Technology and Biotechnology gave over ₹60 crore to 263 start-ups in 2022 and 2023. The Department of Electronics IT BT, and S&T released the “Bengaluru Innovation Report 2024.” It stated that women ran 24% of these start-ups, and 35% were outside Bengaluru. As stated above, out of the 263 funded start-ups, women entrepreneurs led 47, and 119 came from tier II and III towns in the state. This shows how Karnataka wants to include everyone. These start-ups work on new tech in many up-and-coming fields.”
“This decision of the government to support these startups is praiseworthy and shows a forward-looking approach to growing the economy and advancing technology. The big financial boost proves the government wants to support new ideas and business creation in the state. What stands out is how their focus is on including everyone,” he added further.
Recognizing the Hard Work and Effort
The Government of Karnataka’s Department of Electronics, IT, BT, and S&T also hosted a special ceremony to celebrate the winners of Elevate, their flagship Grant-in-Aid program. During the fiscal years 2023 and 2024, the initiative’s four schemes—Elevate Kalyana Karnataka, Amrita Startups, and Elevate Unnati—supported entrepreneurship and innovation in the Kalyana Karnataka region, OBC entrepreneurs, and startups promoted by SC and ST entrepreneurs, respectively. In addition, the Elevate program helps entrepreneurs in the state who are looking for seed money to create a prototype, plan their entrance into the market, and eventually scale up.
A bill requiring private sector employers in Karnataka to hire locals has been adopted by the Siddaramaiah Cabinet. The law specifies a 50% quota for management roles and a 70% quota for non-management roles.
The decision was announced by Chief Minister Siddaramaiah on X, who said that on Monday, the state cabinet had passed a bill to require all private enterprises in the state to recruit only Kannadigas for lower-grade (Group ‘C’ and ‘D’) positions. The Chief Minister, however, removed the post in response to the criticism. The bill’s draught language, however, omits any reference to the full reserve of positions in Groups C and D.
“It is our government’s wish that Kannadigas should not be deprived of jobs in the land of Kannada and should be given an opportunity to build a comfortable life in their motherland,” he explained, while explaining the decision.
With “looking after the welfare of Kannadigas” as its first goal, Siddaramaiah called his administration a “pro-Kannada” one.
The state government emphasized its commitment to consulting with the business and addressing the concerns after the announcement received strong criticism.
What Bill Exactly States
According to the bill, a local candidate must be a Kannada speaker, reader, and writer who was born in Karnataka and has lived in the state for at least fifteen years.
Applicants must have completed secondary school and have Kannada as one of their language choices. If they do not, the government-notified nodal agency will specify that they must pass a Kannada proficiency test, according to the Bill.
Companies and organizations, in tandem with the government, should work to train local candidates within three years if there is a shortage of qualified candidates.
Businesses can ask for a waiver if they still can’t find enough qualified locals. The Bill states, however, that the relaxation must be at least 25% for management categories and 50% for non-management categories.
Penalties for violations of the Employment of Local Candidates Act may reach INR 10,000 to INR 25,000.
Eagerly Anticipated
Amidst calls for a complete quota of Kannadigas in government jobs, the bill was approved.
The Sarojini Mahishi report, which called for a local quota in both public and commercial sector employment, was proposed earlier in July by Kannada organizations, who had staged rallies across the state to demand its immediate implementation.
The 1984 report was filed by Mahishi, who was the first woman to hold the office of a member of parliament from Karnataka and a former union minister. A hundred percent local hiring for group C and D positions in Karnataka-based public sector enterprises (PSUs) and central government agencies was one of the 58 suggestions made in the study.
What is 50% and 75% Quota?
To comply with the law, businesses must hire locals for at least half of their managerial roles and three-quarters of their non-management posts. Except for the directors, everyone holding a supervisory, managerial, technical, operational, or higher position in any business, organization, or facility is considered to be part of the management team. Personnel engaged in non-management roles include those with clerical, unskilled, semi-skilled, skilled, information technology/information engineering, contract, or casual duties.
All private companies in the state shall employ only Kannadigas for C and D-grade positions, according to Chief Minister Siddaramaiah. Clerks, laboratory technicians, and chemists are examples of lower-level positions in the Karnataka Public Service Commission (KPSC) that fall under the C and D grade categories.
Sharing her views on this development, Shreya Sharma, Lawyer and Founder, Rest The Case opined, “For companies, this new regulation could mean additional administrative burdens and costs, as they navigate the complexities of ensuring compliance. There’s also a concern that some businesses might think twice before investing in Karnataka, fearing these new hurdles could make it harder to operate efficiently.”
“Therefore striking balance is the key and for that government needs to prepare a detailed map. A gradual implementation of the quota, coupled with strong local skill development programs, could help bridge the gap. This way, Kannadigas are better prepared to fill these roles without putting undue strain on businesses. Ultimately, while the quota aims to uplift local communities, it’s crucial to strike a balance,” she added.
Similar Move in Other States
The Haryana State Employment of Local Candidates Act, 2020, which imposed a 75% quota for state domiciles in private sector positions paying less than INR 30,000 per month, was declared invalid in 2023 by the Punjab and Haryana High Court. Because it prevented private companies from freely recruiting from the market, the court found that the Act went beyond the State’s legislative power. Additionally, it determined that the Act discriminated against the rights to equality and freedom guaranteed by the Constitution in Articles 14 and 19, respectively.
The court claimed that the 75% local reservation violated the rights of people from neighboring states and could lead to similar nationwide restrictions, essentially creating “artificial walls” throughout India. The document stressed that these limitations unfairly limit employees’ freedom of movement across the nation.
