Industry body Federation of Indian Chambers of Commerce and Industry on Thursday said that the Haryana government’s recent decision to reserve 75% jobs in the state’s private sector for locals will “spell disaster” for industrial development and private investment.

“Investors and entrepreneurs need to source the best human resources available in the country to be competitive and successful,” FICCI President Uday Shankar said. “To force them in such a regressive straightjacket will force them to look beyond Haryana and this will ultimately hurt the interests of the state.”

Shankar also said that the move was “against the spirit of the Constitution”.

On Tuesday, Haryana Governor Satyadeo Narain Arya gave assent to a Bill that reserves 75% of the jobs in private sector that pay less than Rs 50,000 per month, for candidates from the state. Once it becomes the law, the Haryana State Employment of Local Candidates Bill, 2020, will apply to companies, societies, trusts, limited liability partnership firms, partnership firms located across the state.

The Bill was passed by the Haryana government in November last year and was one of the key promises made by the ruling alliance partner Dushyant Chautala-led Jannayak Janta Party during the Assembly elections of 2019.

The Bill defines local candidates as those domiciled in the state. For the domicile status, a person should be born in Haryana or should have lived in the state for at least 15 years, according to PTI. The quota will initially apply for 10 years, according to the Bill.