Taking part in the recently concluded Global Investors Meet, Union Finance Minister Nirmala Sitharaman said Karnataka is a major generator of jobs, and a mere 5 per cent of the country’s population contributes a whopping 8.8 per cent of the country’s Gross Domestic Product (GDP).
Karnataka attracts people from across the country for all kinds of jobs in sectors like IT, textiles, construction and more. But there has been a shrill cry from locals that they are not being given priority in the private sector. Industry experts, however, say there are challenges in implementing this as industries look for appropriately skilled workers.
The Sarojini Mahishi Committee in 1984 recommended that Kannadigas be given priority in the private sector. But four decades later, the government is yet to implement it as there are various hurdles, including legal.
The present BJP government is pushing the Industry Policy 2020-25, which specifies that industries apportion all the D group jobs and 70 per cent of overall jobs to Kannadigas. During the winter session of the legislature, the government tried to pass the Kannada Language Comprehensive Development Bill, which apart from seeking job quota for Kannadigas in the private sector also aims to implement Kannada effectively.
Kannada and Culture Minister V Sunil Kumar had said that the Bill specifies reservation for Kannadigas in education and employment. “If the companies do not follow it, the Bill clearly says their incentives and rebates can be withdrawn,” he said.
The state government has the sanction to hire 7.7 lakh employees, but is managing with around five lakh staffers. Chief Minister Basavaraj Bommai has said one lakh posts will be filled this year and the remaining 1.5 lakh over the next two years that will open up opportunities for Kannadigas and give a boost to the economy.
After the successful completion of GIM, where MoUs worth nearly Rs 10 lakh crore were signed, Bommai told TNIE that the government expects to generate lakhs of jobs from these investments and through other initiatives. The proposed Bill will ensure more jobs for Kannadigas, he added.
The unemployment rate in the state is 3.7 per cent in rural areas and 5.1 per cent in urban areas, with an overall average of 3.6 per cent, as per the Economic Survey Report 2020-21.The survey considers anyone engaging in any economic activity for 30 days or more in a year as employed, using the Usual Principal and Subsidiary Status Approach. The report mentions that Karnataka has the lowest level of unemployment as compared to other parts of the country.
IT’S ALL ABOUT SKILL
TV Mohandas Pai, former director of Infosys and present chairman of Manipal Global Education, said that according to the Employees’ Provident Fund Organisation (EPFO), Karnataka adds an average of 11 lakh jobs every year, which is higher than the number of youth entering the working age, meaning Karnataka has a surplus of jobs.
He said the government and leaders are focusing only on announcing reservation in jobs for Kannadigas. “It could be a political statement, considering that the state is facing the Assembly polls next year. But one should realise that skilled knowledge and experience are more significant. The government should look into it and train the youth.”
The government should focus on primary and higher education in North Karnataka, as the enrolment rate in the region is a pitiable 19 per cent, while the state averages 32 per cent. In Tamil Nadu, it is at a healthy 52 per cent.
An industry spokesperson, who is linked to a major manufacturing company, said in principle, there is no problem in giving reservation to locals in the private sector, but the question is how many jobs and what kind of jobs.
“The reservation may not affect the manufacturing sector much as skills required are not high. But it is not the case with IT companies operating in Bengaluru as they may not find enough and required talent. North Karnataka may not have any impact as more than 60 per cent of the workforce is Kannadiga,” he added.
CONCERNS
There are also apprehensions that reservation may put innovation on the backtrack. “Now they are talking about ‘Build for the World’. How can you do it with local talent? In high technology, many skill sets are not available in the country. The world is going towards Industry 4.0 and how are you going to implement it if you bring in reservation? Companies have to hire expats and people from other states who are well-versed in technology,” said the industry spokesperson, adding that reservation at the lower level can be accepted.
Though some states have introduced job reservation in the private sector, reports suggest that it is not being implemented strictly. “There is a similar rule in Telangana, but there are provisions like paying some amount as a fine for not following it,” another industry expert said.
BV Gopal Reddy, president, Federation of Karnataka Chambers of Commerce & Industry, said it is difficult to arrive at a conclusion before the government prepares the draft. “There are various aspects as the quota involves skilled and unskilled workers. We have to see to which sectors, like IT, manufacturing or service, the reservation would be applicable,” he said, adding that the implementation will not be an easy task.
Suresh Hari, Chairman of Confederation of Real Estate Developers Association of India - Bengaluru Chapter, said there is a plenty of local talent among blue-collared jobs in the construction sector. From civil engineers to architects, many are Kannadigas.Hari said lower level jobs in their field need training. “If the state government is ready, we are willing to help in providing training,” he said.
He pointed out that many years ago, people from outside Karnataka, especially Tamil Nadu and North India, came here for daily wages as locals were not opting for these jobs. Now the scenario has changed as people from North Karnataka and other parts of the state are taking over, he added.
JOB DYNAMICS
Of the estimated 6.11 crore population in Karnataka, 2.44 crore have registered as workers and 55 per cent of the population is in the age group of 20 to 59 years
OF NOTE
Three-fourths of workers are estimated to be in the unorganised sector consisting of agricultural labourers and those in the sub-sectors of non-manufacturing such as shops, establishments & trade, construction, real estate & business activities and hotels & restaurants.
Most of the workers in the organised sector are found in manufacturing & mining, and information technology & biotechnology.
LONG-TERM TARGET
Position Karnataka as the preferred destination of choice for skilled human capital in India
Skilling about 1 crore persons
Emerge among the top 10 global hubs for highly skilled manpower