Nasscom Raises Alarm Over Karnataka's New Employment Bill

Nasscom expresses concerns over Karnataka's new employment bill mandating reservations in private sector jobs. The tech body fears the bill could drive away companies and stifle startups in the state. Deputy CM and other officials assure further discussions before implementation.

Industry body Nasscom, representing the technology and software sectors in India, has voiced its concern regarding the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024. The bill, approved by the Karnataka state cabinet, mandates 50% reservation for administrative posts and 75% for non-administrative posts for Kannadigas in private industries. Nasscom has urged the state government to withdraw the bill.

'Nasscom members are seriously concerned about the provisions of this bill and urge the state government to withdraw it. The bill's provisions threaten to reverse this progress, drive away companies, and stifle startups, particularly when more global firms (GCCs) are eyeing investment in the state. Restrictions could force companies to relocate due to a scarcity of local skilled talent,' read a statement from Nasscom. The tech sector contributes 25% to Karnataka's GDP, houses a quarter of India's digital talent, over 11,000 startups, and 30% of the country's GCCs, the statement added.

Nasscom further cautioned that the bill's provisions could derail what the state has accomplished in technology and software. 'In today's competitive landscape, knowledge-led businesses will locate where talent is. Attracting skilled workers is crucial for success,' the body emphasized. Nasscom has requested an urgent meeting with industry representatives and state authorities to discuss these concerns.

Deputy CM DK Shivakumar, however, reassured the industry, stating that further discussions would be held. 'No investors need to worry. We want investors to come to Karnataka. There are talented individuals from outside the state working here, and they are welcome. Our population in Bengaluru has grown to 1.4 crores due to this influx. We just want to give them scope,' he said.

Priyank Kharge highlighted that the bill was introduced by the labor department without consulting the industry, the Minister of Industry, and the Department of Information Technology. He assured that due consultations would take place before the bill's rules are finalized. 'There is no need to panic. We are going to safeguard jobs in the state and encourage investments,' Kharge said. Earlier, several industry leaders opposed the bill, labeling it as 'discriminatory' and raising concerns over its impact on the tech industry. (ANI)

(With inputs from agencies.)