Andhra Pradesh Minister Nara Lokesh has extended an invitation to tech companies to relocate their businesses to Visakhapatnam, following the National Association of Software and Service Companies (NASSCOM) expressing disappointment over the recent legislation passed in Karnataka. The Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024, mandates that private firms reserve jobs for Kannadigas, sparking concerns within the tech industry.
In a tweet addressed to NASSCOM members, Lokesh acknowledged the organization’s frustration and welcomed them to expand or relocate to Visakhapatnam, highlighting the city’s burgeoning IT, IT services, AI, and data center cluster. He assured NASSCOM that the state would provide top-notch facilities, uninterrupted power supply, robust infrastructure, and skilled talent without any government restrictions.
The controversy surrounding the Karnataka job reservation Bill began with the state cabinet’s approval of the legislation, making it mandatory for private firms to prioritize Kannadiga candidates for employment. However, the bill has faced criticism from industry leaders, who have deemed it discriminatory and expressed apprehension over its potential impact on the tech sector’s growth and job opportunities. NASSCOM, in particular, voiced its concern, stating that the Bill could force companies to relocate and potentially hamper the tech industry’s progress. The organization also requested urgent meetings with state authorities to discuss the matter further.
Karnataka Minister Priyank Kharge, in response to Lokesh’s invitation, countered by emphasizing the importance of employing local talent. He asserted that Karnataka has always prioritized the development of a skilled workforce through collaborative efforts with industry leaders and advisory bodies. He further explained that the draft bill incorporates recommendations from industry partners, aiming to create a global workforce by harnessing local talent while fostering global investments and employment opportunities.
The controversy underscores the delicate balance between promoting local talent and attracting global businesses. While Andhra Pradesh is actively seeking to capitalize on the potential exodus of tech companies from Karnataka, Karnataka maintains its commitment to developing its local talent pool and fostering a favorable environment for businesses.
