'Detrimental To Businesses': Kiran Mazumdar-Shaw On Andhra Policy Mandating 75% Job For Locals

Biocon Ltd Executive Chairperson Kiran Mazumdar-Shaw has spoken out against the Andhra Pradesh government reserving quotas for local workers, claiming that it is "detrimental" to businesses.

The comments come in response to a social media post regarding the Andhra Pradesh Employment of Local Candidates in Industries/Factories Act, which was enacted in 2019 and reserves 75% of the private jobs for eligible locals. A recent report by South First cited an RTI reply to state that the provision has been enforced since October 2019.

"I do not agree with this mandate. I always believe that companies will give preference to locals if they have the required skills," she posted on X. "If not, then such policies are detrimental to businesses."

The Bengaluru-based Biocon chief has made similar comments earlier as well. Last year, the Karnataka government had approved a draft bill mandating 50% reservation for locals in management jobs and 70% in non-management categories.

Mazumdar-Shaw had called for an exemption of highly skilled labour from this policy and said, "As a tech hub, we need skilled talent."

However, many X users have scrutinised Shaw's comments, remarking that job security for locals does not eat away at prioritising skills.

"Rules only tells you to hire 75% locals, natives. It didn't reduce any qualifications for locals. We have given all the incentives for your company, so we are asking for 75% jobs for locals. Why should locals compete with migrants to get job in their home state?" asked one user.

Others labelled her stance "completely wrong" that reservations should be in place for both education and jobs.

"She’s completely wrong. Reservation for locals must exist in both education & jobs. every city can grow based on its unique skills & culture. Let industries spread across the Union, with limited, skill-based migration alongside strong local participation," another user stated.

Although some users also backed her position on the issue stating that skills cannot be substituted with anything, "Skill has no substitute! prioritizing locals is good, but as Kiran Shaw said, skills must be the first criteria."