The Siddaramaiah-led Congress government in Karnataka approved ‘The Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024’ on Tuesday.

The legislation seeks to reserve 75 per cent of non-management jobs and 50 per cent of management jobs for “local candidates.”

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The announcement of the Bill sparked a massive controversy, drawing immediate criticism from top CEOs and industry bodies, who warned that the legislation could force firms to relocate out of Karnataka.

NASSCOM, the apex body of the tech industry, raised serious concerns over the legislation, stating that it was “disappointed” and “deeply concerned” about the passage of the Bill. “This Bill will not only hamper the growth of the industry but also impact jobs and tarnish the state’s global brand,” it said in a statement.

The organisation further warned that the provisions of the proposed Bill could “reverse progress, drive away companies, and stifle start-ups.”

Bill put on hold by the state govt

Faced with the backlash against the move, the Siddaramaiah Government hastened to announce on Wednesday that it would put the Bill on hold. The state Cabinet is expected to discuss the Bill comprehensively in its next meeting, considering the widespread criticism and potential economic repercussions.

Andhra Pradesh woos NASSCOM member firms

Seizing the opportunity provided by the controversy, TDP leader and son of Andhra Pradesh Chief Minister Chandrababu Naidu Nara Lokesh extended an invitation to NASSCOM member firms to relocate to his state.

“We will offer you best-in-class facilities, uninterrupted power, infrastructure, and the most suitable skilled talent for your IT enterprise with no restrictions from the Government. Andhra Pradesh is ready to welcome you. Please get in touch!” he wrote on ‘X’.