Editorial: Shun rabid nativism

Karnataka govt’s ‘quota for locals’ policy is fraught with dangerous social and economic ramifications

The Constitution allows every citizen to live and work anywhere freely within the country. Any attempt by the States to impose restrictions on this right would not only be ultra vires and unconstitutional but also be regressive. The idea of enforcing reservations for locals in the private sector would undermine the basic spirit of equality and development. Moreover, such a policy would scare away potential investors, thereby hampering the industrial development of the States. Karnataka government’s move to provide mandatory reservation for locals, across all categories of job roles, in the private sector is bad in law, politics and economics. Such restrictive quotas could take a high toll on the dynamism of cities like Bengaluru, which essentially thrive because of the openness of their economy. The Bill, now put on hold by the Siddaramaiah government following the widespread outcry, mandates industries, factories and other establishments to appoint 50% of local candidates in management categories, 75% in non-management roles and 100% in lower-level jobs. It is ironic that such a legislation is proposed in a State that is regarded as India’s Silicon Valley, attracting talent from all over the country. The move follows a pattern among successive governments in Karnataka, ceding to demands by pro-Kannada groups, though many of these could not be implemented. The ‘quota for locals’ policy is fraught with dangerous social and economic ramifications. It would be naïve and reckless to think that the quota system would somehow magically solve the unemployment problem. One wonders what would happen to India’s federal structure if every State insists on setting aside a significant chunk of the jobs in the private sector for locals.

In such a scenario, half of the employees in Maharashtra, Karnataka and Telangana will have to move out. Large corporations across sectors and IT giants like Infosys, Wipro and TCS can never have a national talent pool nor can they ensure diversity at their workplaces. It must be pointed out that ‘jobs for locals’ laws go against the provisions in the Constitution which promise equality of law irrespective of place of birth (Article 14), against discrimination in employment (Article 16), and free movement to all citizens across the country (Article 19). Such quota policies would make businesses unviable, thereby reducing the total number of jobs available. Restrictions on labour mobility would deprive the labour pool of its diversity, which is a big strength of the Indian economy. At a more macro level, such rabid nativism weakens the bonds that unite India and violates the fundamental right of citizens to seek livelihood anywhere in the country. The other potential negative impacts are increased risk of labour shortages, aggravating wage inflation and worsening regional inequalities. The solution to the problem of unemployment lies in improving the quality of education, upgrading the skills of workers, and creating a favourable ecosystem to attract industries.

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