NEW DELHI: NASSCOM, alongside its member companies, shows concern and disappointment following the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024.
The Bill mandates 100 per cent reservation for Kannadigas in the private sector for Group C and D posts. It mandates that industries, factories and other establishments appoint local candidates in 50% of management positions and 75% in non-management positions on July 15.
The contentious bill, aimed at prioritizing local employment in industries and factories, has sparked fears of severe repercussions. Industry leaders argue that such restrictions could precipitate a scarcity of skilled local talent, potentially compelling companies to consider relocation. This scenario, they contend, would undermine Karnatakaโs status as a technology hub and adversely affect job creation.
The tech sector, which contributes a substantial 25% to the stateโs GDP and hosts a quarter of Indiaโs digital talent, finds itself at a critical juncture. With over 11,000 startups and 30% of the nationโs Global Capability Centers (GCCs) calling Karnataka home, the sector has been pivotal in propelling the stateโs economic and social advancement. Bengaluru, in particular, is internationally recognized as Indiaโs Silicon Valley.
โThe technology sectorโs growth has been instrumental in Karnatakaโs higher-than-national-average per capita income and overall economic prosperity,โ remarked a spokesperson for NASSCOM. โThe passage of this bill threatens to unravel years of progress, deter global investments, and stifle the vibrant startup ecosystem that has flourished here.โ
NASSCOM members have expressed urgent concerns over the billโs provisions and are calling upon the state government to reconsider its stance. They advocate for a dual strategy that not only attracts global talent but also emphasizes investments in nurturing local skills through both formal education and vocational training.
Highlighting the urgency of the situation, NASSCOM has requested an immediate dialogue between industry representatives and state authorities to address these concerns comprehensively. The outcome of such discussions, they believe, will be crucial in safeguarding Karnatakaโs continued growth trajectory and its pivotal role in Indiaโs tech-driven economy.
As stakeholders await further developments, the tech community remains vigilant, underscoring the importance of policies that foster innovation, attract investments, and sustainably nurture talentโa combination that has defined Karnatakaโs technological success story thus far.
