Karnataka job reservation row: Nasscom opposes Karnataka’s local jobs reservations bill, warns firms might relocate

The tech industry’s apex lobby group, the National Association of Software and Service Companies on July 17 said it was “disappointed” and “deeply concerned” about the possible passage of the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024 — a law, when enacted, would mandate private firms with operations in the State to hire locally for Group C and D category workers. The tech sector contributes 25% of the State’s GDP, houses a quarter of the country’s digital talent, with more than 11,000 start-ups and 30% of the total Global Capability Centres, Nasscom said, warning local employment laws “could force companies to relocate as local skilled talent becomes scarce.” Nasscom said knowledge-led businesses would locate where talent is, as attracting skilled workers is crucial for their success. Nasscom advocated “a dual strategy” to foster the tech sector - frame policies to attract top global talent and invest in building a local talent pool through formal and vocational education. Nasscom said it is seeking an “urgent meeting for industry representatives with State authorities to discuss the concerns and prevent the State’s progress from being derailed.”