The recent approval of the Reservation Bill by Karnataka’s Siddaramaiah government mandates significant quotas for locals in private sector jobs, sparking industry backlash.

This legislation requires 50% of management and 75% of non-management positions to be filled by Kannadigas, leading to concerns about its impact on the tech sector.

Vizag as an Alternative

Due to these developments, some tech companies are considering relocating to Visakhapatnam (Vizag). Andhra Pradesh IT Minister Nara Lokesh has already extended an invitation to these companies, highlighting Vizag's advantages:

1. Strategic Location and Infrastructure: Vizag is well-connected with a natural port, an international airport, and a significant railway hub. It also hosts the headquarters of the Eastern Naval Command.
2. Thriving Industrial Sector: The city has a strong presence in the pharmaceutical and heavy industry sectors.
3. Potential for IT Growth: Under the leadership of Chief Minister Chandrababu Naidu, who previously spearheaded Hyderabad’s IT boom, Vizag is poised for significant growth in IT and FinTech sectors.

Industry Concerns

Prominent industry leaders like Kiran Mazumdar-Shaw and TV Mohandas Pai have expressed concerns about the Reservation Bill, emphasizing the need for skilled talent and calling for more investment in higher education and skill development.

NASSCOM's Stand

NASSCOM has warned that the new policy could drive tech companies out of Karnataka due to a shortage of skilled local talent. The tech sector is crucial to Karnataka’s economy, contributing 25% of its GDP and employing a large portion of India’s digital workforce.

Conclusion

With Karnataka's new reservation bill creating uncertainty, Visakhapatnam emerges as a viable alternative for tech companies. Its robust infrastructure, strategic location, and supportive leadership make it an attractive destination for the tech industry.

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