'Deeply Disturbing': Software Body Nasscom Slams Karnataka's Job Quotas Bill In Private Sector, Seeks Its Withdrawal

Software body Nasscom has said that Karnataka cabinet-approved bill for reservation of jobs in private industry to locals will hamper growth of tech industry and impact employment.

Nasscom added that if the bill is not withdrawn, it could force companies to relocate.

Further, the body has also sought an urgent meeting with state authorities to discuss its concerns.

The software body said that tech sector contributes to 25 per cent of the state GDP.

Expressing deep concern regarding "the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024", Nasscom said that such 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," Nasscom said in a statement.

It added that 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. 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," it said.

"Its deeply disturbing to see this kind of bill which will not only hamper the growth of the industry, impact jobs and the global brand for the state," the software body said.

"Nasscom members are seriously concerned about the provisions of this bill and urge the state government to withdraw the bill," it added.

According to the Nasscom, the bill's provisions threaten to reverse Karnataka's 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," it said.

"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," the software body added.

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