Nasscom voices concern over K’taka quota Bill

The Bill’s provisions threaten to drive away companies, and stifle startups, especially when more global firms (GCCs) are looking to invest in the State - Nasscom

Tech Hub: 

•  Indian technology industry at $200 bn
•  Tech sector contributes 25% to Karnataka’s GDP
•  Karnataka houses over 30% of total GCCs, 11,000 startups

New Delhi: Nasscom, representing India’s $200-bn technology industry, on Wednesday said it is seriously concerned about the provisions of a Bill providing for reservation for Kannadigas in private companies in Karnataka.

Nasscom and its members said they were disappointed and expressed deep concern regarding the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024, saying restrictions could force companies to relocate as local skilled talent becomes scarce.

“Nasscom members are seriously concerned about the provisions of this Bill and urge the State government to withdraw it,” said the IT industry’s apex body.

“The Bill’s provisions threaten to 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,” Nasscom added.

The apex industry chamber said it is seeking an urgent meeting of industry representatives with State authorities to discuss their concerns and prevent Karnataka’s progress from being derailed.

Globally, there is a huge shortage of 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 focused investment in building a strong talent pool within the State through formal and vocational channels,” Nasscom noted.