Karnataka Quota Bill: Nasscom Raises Concerns Over Employment Reservation For Kannadiagas, Says It Will Force Companies To Relocate

Nasscom on Wednesday raised concerns over the Karnataka Bill on 100% private sector employment reservation for Kannadigas in Group C and D jobs, which has been cleared by the state’s Cabinet, and said it could hamper the growth of the industry, impact jobs, and force companies to relocate. The software body also seeks an urgent meeting for industry representatives with state authorities. The Karnataka Cabinet on Monday approved the ‘Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024,’ that made industries, factories and other establishments mandatory to appoint local candidates in 50 per cent of management positions and 75 per cent in non-management positions. It also mandates 100 per cent reservation for Kannadigas in private sector for Group C and D posts, said Chief Minister Siddaramaiah.

“It’s deeply disturbing to see this kind of Bill, which will not only hamper the growth of the industry, impact jobs and the global brand for the state. Nasscom members are seriously concerned about the provisions of this bill and urge the state government to withdraw the bill,” Nasscom said in a statement. It added that the Bill’s provisions threaten to reverse this progress, 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 is seeking an urgent meeting for industry representatives with state authorities to discuss the concerns and prevent the state’s progress from being derailed,” it said. It said in today’s highly competitive landscape, knowledge led businesses will locate where talent is as attracting skilled workers is crucial for success. Globally, there is a huge shortage for 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 focussed investment in building a strong talent pool within the state through formal and vocational channels.

The technology sector has been crucial to Karnataka’s economic and social development, with Bengaluru known globally as India’s Silicon Valley. The technology sector contributes almost 25% of the state GDP and has played a key role in enabling higher growth for the state, higher per capita income than the national average. With over a quarter of India’s digital talent, the state houses over 30% of the total GCCs and around 11000 start-ups.