Nasscom: NASSCOM has said that due to this decision, companies and investments will start distancing themselves from Karnataka. Also, the image of the state will be damaged all over the world.
Nasscom: There has been a sharp reaction from the business world against the Karnataka government’s bill on reservation in the private sector. Many businessmen upset with this bill have expressed their concern. Apart from this, NASSCOM, a major industry body, has said that due to lack of skilled talent at the local level, such laws will force companies to leave the state. This bill was approved by the state cabinet on July 15.
Companies will start distancing themselves from Karnataka – NASSCOM
The National Association of Software and Service Companies (Nasscom) has appealed to the Karnataka government to repeal the bill. NASSCOM said on Wednesday that it is disappointed and extremely concerned with the Karnataka government’s decision to allow local people in industries. The Karnataka government has brought a bill on reservation in jobs for the people of its state. However, businessmen have expressed concern that due to such laws, companies will start distancing themselves from Karnataka.
Tech sector contributes 25 percent to the state’s GDP
This bill was approved in the cabinet meeting held on July 15 under the chairmanship of Chief Minister Siddaramaiah. In this, 50 percent reservation for local people in management jobs of private companies and 75 percent reservation in non-management jobs has been made mandatory. NASSCOM said that such laws are not good for companies. The technology sector has contributed 25 percent to the state’s GDP. More than 11,000 startups and 30 percent of the Global Capability Center are present here.
NASSCOM will hold a meeting with state officials
According to NASSCOM, this bill is going to take progress in the opposite direction, drive companies away and stop the growth of startups. This can harm the state’s image all over the world. Companies want to invest more and more in Karnataka. But such rules will drive investment away from the state. NASSCOM said it will hold an immediate meeting with state officials. The first attempt at reservation in the private sector was made in Haryana. This decision was stayed by the Punjab and Haryana High Court in November 2023.
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