Karnataka Quota Bill: Nasscom unhappy, fears companies will relocate from the state

New Delhi: Nasscom, representing India’s $200 billion technology industry, has expressed serious concern over the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024. The Bill proposes reservation for Kannadigas in private companies, which Nasscom fears could lead to a scarcity of skilled local talent and potentially force companies to relocate. This move comes at a time when global firms are increasingly interested in investing in Karnataka.

The IT industry's apex body emphasised the negative impact of these provisions on startups and urged the state government to withdraw the Bill. Nasscom highlighted the importance of Karnataka maintaining its appeal as a technology hub by attracting global talent while also investing in local talent through formal and vocational channels.

In response to earlier announcements, Karnataka Chief Minister Siddaramaiah has since retracted a social media post (on X) regarding 100% reservation for Kannadigas in Group C and D jobs in private companies. The technology sector, which contributes nearly a quarter of Karnataka’s GDP, plays a pivotal role in the state's economic growth, boasting a significant portion of India’s digital talent, numerous GCCs, and thousands of startups. IANS