‘Seriously concerned’: Nasscom shocked over Karnataka's Local Employment Bill

Nasscom, the apex body representing India’s $200 billion technology industry, has voiced serious apprehensions regarding the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024. The bill proposes reservations for Kannadigas in private companies, a move Nasscom fears could have detrimental effects on the state's business environment.

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In a statement released on Wednesday, Nasscom expressed disappointment and deep concern over the potential passage of the bill. The industry body highlighted that such restrictions could lead to a scarcity of skilled local talent, potentially forcing companies to consider relocating from Karnataka. This, Nasscom argued, could negatively impact the growth of startups and deter global firms from investing in the state.

"Nasscom members are seriously concerned about the provisions of this Bill and urge the state government to withdraw it," stated the industry body, emphasizing the importance of maintaining Karnataka's attractiveness as a tech hub.

Nasscom further stressed the need for an urgent dialogue between industry stakeholders and state authorities to address these concerns comprehensively. They seek a collaborative approach to ensure that Karnataka's progress in the tech sector remains unhindered and conducive to both local talent development and global investments.

As debates over the bill intensify, stakeholders await further developments and discussions aimed at balancing local employment preferences with the state's aspirations for continued economic growth and innovation.