Karnataka job reservation: Nasscom, its members express disappointment over Bill’s passage

The restrictions in the wake of the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024.  could force companies to relocate as local skilled talent becomes scarce, I-T industry body Nasscom has said. 

As per Nasscom, tech sector contributes to 25 per cent of the state GDP, houses a quarter of the country’s digital talent, over 11000 start-ups and 30 per cent of the total GCCs.

“In today's highly competitive landscape, knowledge led businesses will locate where talent is as attracting skilled workers is crucial for success. Globally, there is a huge shortage for skilled talent and Karnataka despite the large pool, is no exception,” said the Nasscom statement. 

For states to become a key technology hub a dual strategy is key magnet for best talent worldwide and focussed investment in building a strong talent pool within the state through formal and vocational channels, the statement added. 

The technology sector has been crucial to Karnataka’s economic and social development, with Bengaluru

known globally as India’s Silicon Valley. The technology sector contributes almost 25 per cent of the state GDP and has played a key role in enabling higher growth for the state, higher per capita income than the national average, added the Nasscom statement. “With over a quarter of India’s digital talent, the state houses over 30 per cent  of the total GCCs and around 11000 start-ups,” said Nasscom spokesperson adding that it was deeply disturbing to see this kind of a Bill which will not only hamper the growth of the industry, impact jobs and the global brand for the state.

“Nasscom members are seriously concerned about the provisions of this bill and urge the state government to withdraw the bill. The bill's provisions threaten to reverse this progress, drive away companies, and stifle startups, especially when more global firms (GCCs) are looking to invest in the state. At the same time, the restrictions could force companies to relocate as local skilled talent becomes scarce,” the statement added. 

Nasscom is seeking an urgent meeting for industry representatives with state authorities to discuss the concerns and prevent the state's progress from being derailed.