Following the Karnataka Cabinet's approval of a controversial job reservation bill, neighboring states Andhra Pradesh, Kerala, and Telangana are vying to attract businesses potentially disillusioned by the new legislation. The bill, which mandates reserving 50% of managerial roles and 75% of non-managerial roles in private industries for local candidates, faced backlash from the IT sector and prompted an invitation from Andhra Pradesh's IT and Electronics Minister, Nara Lokesh, for companies to relocate.
NASSCOM, the apex body representing the IT sector, expressed disappointment and concern over the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024. The organization warned that such restrictions could force companies to move operations due to a scarcity of local skilled talent. Responding to these concerns, Nara Lokesh took to social media to invite investors to expand or relocate their businesses to Andhra Pradesh's IT and data center cluster in Vizag.
Lokesh assured potential investors of top-notch facilities, uninterrupted power, infrastructure, and a skilled talent pool without government-imposed restrictions. "Andhra Pradesh is ready to welcome you. Please get in touch," he posted.
Similarly, Kerala's Law and Industries Minister, P Rajeev, seized the opportunity to attract businesses to his state. In a social media post, Rajeev emphasized Kerala's highly skilled talent pool, favorable climate, and merit-based recruitment system. "Invest in Kerala. Employee talent and merit are the only criteria for recruitment.
In Telangana, Minister Sridhar Babu Duddilla also extended an invitation to IT and BT companies. Highlighting Hyderabad's potential to become a global IT hub and the AI capital of the world, Duddilla emphasized Telangana's commitment to creating a conducive environment for businesses. "The Telangana government is committed to creating the best environment for companies aiming to compete at the highest level," he stated, promising collaboration and support for seamless operations.
The Karnataka government, led by the Congress party, decided to put the bill on hold on July 17, a day after its initial approval, following the severe backlash. This decision opens the door for neighboring states to capitalize on the controversy by offering attractive alternatives to businesses seeking a stable and supportive environment.