BENGALURU: Industry body the National Association of Software and Service Companies (NASSCOM) has urged the Karnataka government to withdraw the bill that aims to reserve jobs for locals in the private sector. It said, "Deeply disturbing to see this kind of bill which will not only hamper the growth of the industry, but also impact jobs and the global brand for the state," nasscom said.
The Karnataka Cabinet has approved legislation mandating a 50% reservation in management jobs and a 75% quota in non-management jobs for locals in the private sector.
"NASSCOM & its members are disappointed and express deep concern regarding the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024," the industry body said in a statement.
NASSCOM also sought an urgent meeting for industry representatives with state authorities to discuss the concerns.
Tech sector contributes to 25% of the state GDP, houses a quarter of the country’s digital talent, over 11,000 start-ups and 30% of the total global capability centres (GCCs). According to nasscom, restrictions could force companies to relocate as local skilled talent becomes scarce.
"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. 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," it added.
The technology sector has been crucial to Karnataka’s economic and social development, with Bengaluru known globally as India’s Silicon Valley.
"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 start-ups, 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," nasscom added in the statement.