IT BPM trade association nasscom and its members have voiced strong concerns over the recently passed Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024.
The new legislation has sparked significant anxiety within Karnataka's tech industry, which contributes 25 per cent to the state’s GDP and houses a quarter of India’s digital talent. The sector is home to over 11,000 startups and 30 per cent of the nation's Global Capability Centers (GCCs).
“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
Nasscom’s primary worry is that the bill's restrictions could lead to a scarcity of local skilled talent, forcing companies to consider relocating.
“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. At the same time, the restrictions could force companies to relocate as local skilled talent becomes scarce,” the non-governmental trade association said in a statement.
In response to these concerns, nasscom has sought an urgent meeting with state authorities to discuss the potential repercussions and advocate for the bill’s withdrawal.
“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,” the statement mentioned.
