Come to Vizag, Andhra minister tells tech companies amid Karnataka local job quota bill row

Amid the controversy surrounding Karnataka's local quota Bill, Andhra Pradesh Minister Nara Lokesh extended an invitation to NASSCOM members, encouraging them to consider expanding or relocating their businesses to Vizag. The bill in question mandates that 50% of management positions and 75% of non-management positions in the private sector be reserved for locals.

"We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI, and data centre cluster at Vizag," wrote Lokesh in an X post. He emphasized that Andhra Pradesh offers best-in-class facilities, uninterrupted power, infrastructure, and a skilled talent pool without any government-imposed restrictions.

This invitation comes as NASSCOM voiced significant concerns over Karnataka's new legislation, which they argue could erode the state's competitive edge in technology. NASSCOM is seeking an urgent meeting with state authorities to discuss these concerns and prevent the potential negative impacts on the state's progress.

NASSCOM's statement highlighted the tech sector's crucial role in Karnataka, contributing 25% of the state GDP and housing a quarter of the country's digital talent. The association warned that the bill's provisions could drive away companies and stifle startups, particularly at a time when more global firms are looking to invest in the state.

Industry veteran Mohandas Pai criticized the bill, calling it "very regressive" and "draconian." The bill, approved by Karnataka's state Cabinet on July 15, 2024, has sparked widespread controversy and criticism within the industry.