The Karnataka government’s recent reversal on extending reservation for local people in the private sector serves as a case study in how not to manage economic growth. On 17 July, Karnataka approved a bill mandating that local candidates hold 75 per cent of non-management and 50 per cent of management positions in the private sector. This decision was promptly withdrawn following protests from industry bodies. The spanner-in-the-works notification by the government is not only a classic example of parochial politics with narrow interests of securing vote-bank but also highly detrimental to the economic growth and progress of the state. Such setbacks for industries in Karnataka could have cascading effects on the national economy as well.
Karnataka is not the only state in recent times to come up with such a retrograde move. Andhra Pradesh, Jharkhand and Punjab have also introduced similar policies, which are either under judicial review or have been quashed or withdrawn. Needless to say, the underlying motivation for these notifications is the greed of the political class to build and exploit the “local versus outsider” narrative. For instance, in 2008, the Maharashtra government mandated that all micro, small, medium, large and mega industrial enterprises ensure 50 per cent of supervisory staff and 80 per cent of total employees (including supervisory staff) be local, with the head of human resources/recruitment required to be proficient in Marathi.
The “jobs for locals only” demand began as early as 1952 with the “Mulki agitation” in Telangana. Soon after the accession of Nizam-ruled Hyderabad, the issue of employing administrators from outside led to significant unrest. Higher population growth, increase in the number of educated people, and lack of industrialisation resulted in the ‘Mulki agitation’. The issue highlighted several uncomfortable aspects including the conflict between citizen’s mobility rights and local employment politics, as well as the need for updated social norms and industry requirements. Thus, ensuring an uninterrupted supply of skilled, semi-skilled, and unskilled labour, aided by migration, becomes an important component of a state’s industrial stability and growth.
According to the Periodic Labour Force Survey for July 2020 to June 2021 by the Ministry of Statistics and Programme Implementation (MOSPI), 42.9 per cent of migration in India was employment-related. Even considering that this data is from a Covid-affected period that witnessed large-scale planned and unplanned urban-to-rural migration, the rate of migration in Urban India was still 34.9 per cent, with 47.8% of migrants being women. Migrant labour—whether skilled, semi-skilled or unskilled—is a tangible component of the labour force of a state. Politics that raises anti-migrant sentiment directly endangers the life and livelihood of three out of every 10 workers in a city. The problem becomes more severe when we explore its linkages with regionalism.
The World Values Survey, which assesses a respondent’s social, political and economic beliefs in more than a hundred countries, indicates that only 16.9% of 1,692 Indians surveyed said that ‘most people could be trusted’. Conversely, 81.9% of the respondents said ‘they had to be careful’. While generalisation from such surveys can be debated or one could be faulted for passing value judgement on the personal opinion of others, in the context of a highly competitive Indian job market, the local-versus-industry debate becomes a zero-sum game for “Mulki” or sons of the soil.
Equal opportunities for all
‘Sons of the soil’ agitations fanned by political short-sightedness disproportionately impact unskilled and poor migrants and could potentially trigger equal and opposite reactions in their states of origin. Historical examples, such as the mass exodus of Northeast people from Bangalore in 2012 and the ‘anti-South Indian’ protests in Maharashtra during the 1960s, are stark reminders of the perils of parochialism in governance.
Karnataka, Tamil Nadu, and other industrially developed states should study the changing patterns of industrial ownership and growth, their contribution to the state exchequer, and the role of migrant populations—especially those who ‘adopt’ the state of their employment. Whipping up local-only policies and anti-migration rhetoric usually comes at the cost of economic stagnation. The so-called migrants become business owners and employers in their new locations; for example, entrepreneurs from Bihar now run businesses in Tiruppur, a textile hub in Tamil Nadu that was once an employment destination for semi-skilled workers from UP and Bihar.
With India emerging as the world’s most preferred investment destination and Indians leading some of the top global companies, the need of the hour is to provide equal opportunities for all citizens and create a conducive environment with the right infrastructure and policies. India’s aspiration to grow into a $5 trillion economy and emerge as the ‘manufacturing hub’ of the world is a hotly debated issue on social media ever since one of the doyens of the IT industry expressed scepticism about India’s ability to compete with China’s manufacturing prowess.
Amid the growing “locals only” outlook of the states—possibly a political counter to the BJP’s ‘one nation-one people’ narrative—it is migrants and industries that risk becoming collateral damage. In the politically motivated ‘mulki versus outsider’ conflict, it is the industry and economy that will ultimately become the victim.
Seshadri Chari is the former editor of ‘Organiser’. He tweets @seshadrichari. Views are personal.
(Edited by Prashant)
Do you have the guts to say this to raj Thackeray your Ally self proclaimed marathi saviour he also does the same kind of politics in Mumbai vilifying “bhaiyas” up Bihar migrants who have mostly build buildings all around Mumbai and as construction workers as daily wagers , low paid workers himmat hai toh bol ke dikhao..
Very true. Bombay, especially its globally admired film industry, an example of what Indians blending harmoniously can achieve. Seasonal and longer duration migration is binding us more tightly together as a nation than purely political initiatives could.
Why bother about economic stagnation? The economy is Modi’s responsibility. One can always put the blame for economic stagnation on Modi.
Let’s reserve all private sector jobs for Kannadigas. It’s a sure shot way of winning state elections.
Congress came to power in Karnataka by whipping anti-migrant emotions among Kannadigas. It’s shrill anti-migrant rhetoric over the last 5 years is the reason it was able to snatch power from BJP in Karnataka. It would be foolhardy to think that they would abandon a winning formula. Rather, we can expect more such atrocious laws designed to deter “outsiders” from entering Karnataka. In fact, Karnataka might take inspiration from Meghalaya and decide to appeal for the implementation of an Inner Line Permit (ILP).