 "Best of BS Opinion: Parochial economics, trade winds, move over IT, more")
The Karnataka cabinet has added a twist to a controversy roiling India’s business community by mandating reservations for locals in private sector jobs. This bid for nativist employment laws is not novel – Maharashtra, Andhra Pradesh and Haryana have also passed such laws. The Haryana law was struck down by the High Court in November 2023 on grounds that it violated the basic Constitutional rights of Indian citizens. This apart, the economic logic of such parochialism is hard to fathom. Private industries operating in competitive markets need the freedom to access the best talent available. Restricting the talent pool on parochial grounds is certain to impinge on efficiency and productivity, both critical competitive requirements for knowledge industries that depend on overseas markets. So far states have thrived on the multicultural talent that India has to offer. Restricting jobs for narrow political populism is akin to killing a productive golden goose, the top edit says. Read it here
In other views:
Ajay Srivastava predicts that Other Business Services could become India’s next export powerhouse. Read it here
Amit Kapoor & Bibek Debroy point to ways to tackle climate change risks to urban infrastructure. Read it here
The second edit highlights the urgent need to tackle non-tariff barriers as India aims to boost exports and sign more FTAs. Read it here
QUOTE OF THE DAY
‘The Bill's provisions threaten to reverse this progress, drive away companies, and stifle startups’
Nasscom statement on Karnataka’s local employment Bill.