Nasscom Concerned About New Karnataka Job Reservation Bill
New Delhi [India], July 17: Nasscom, representing India’s technology and software industry, has raised concerns about the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024. The bill, approved by the Karnataka state cabinet, mandates 50% reservation for administrative posts and 75% for non-administrative posts for Kannadigas in private industries.
Nasscom urged the state government to withdraw the bill, stating, “Nasscom members are seriously concerned about the provisions of this bill and urge the state government to withdraw the bill. 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.”
The tech sector contributes 25% of Karnataka’s GDP, houses a quarter of India’s digital talent, over 11,000 startups, and 30% of the total GCCs. Nasscom warned that the restrictions could force companies to relocate due to a scarcity of local skilled talent.
Deputy CM DK Shivakumar reassured that further discussions would be held, saying, “No investors need to worry. We want investors to come to Karnataka. There are certain sections of the people who are talented and have come from outside the state. We want them to work in Karnataka.”
Priyank Kharge added, “The bill has been brought in by the labour department. They are yet to consult with the industry, the Minister of Industry, and the Department of Information Technology. I am sure that before coming up with the rules of the bill, they will have due consultations with the respective ministries and more importantly, a wider consultation with the industry.”
Several industry leaders have also objected to the bill, calling it “discriminatory” and expressing concerns that the tech industry may suffer.
Doubts Revealed
Nasscom -: Nasscom stands for the National Association of Software and Service Companies. It is a trade association of the Indian Information Technology (IT) and Business Process Outsourcing (BPO) industry.
Karnataka -: Karnataka is a state in the southern part of India. Its capital city is Bengaluru, which is known as the tech hub of India.
Job Reservation Bill -: A Job Reservation Bill is a law that reserves a certain percentage of jobs for specific groups of people. In this case, it reserves jobs for locals in Karnataka.
Administrative jobs -: Administrative jobs are roles that involve managing and organizing tasks in an office, like office managers or human resources.
Non-administrative jobs -: Non-administrative jobs are roles that do not involve managing tasks in an office, like technical or field jobs.
Deputy CM DK Shivakumar -: DK Shivakumar is the Deputy Chief Minister of Karnataka. The Deputy CM is the second-highest-ranking official in the state government.
Priyank Kharge -: Priyank Kharge is a politician in Karnataka. He is involved in discussions about the new job reservation bill.
Startups -: Startups are new companies that are just beginning to develop. They often focus on innovative products or services.
Discriminatory -: Discriminatory means treating people unfairly based on certain characteristics, like where they are from. In this context, it means giving unfair job advantages to locals over others.
