Companies in Andhra Pradesh have three years to implement the new law mandating 75 percent job reservation for local workers. While some firms are worried that the regulation will keep new business away, the IT sector is not sure whether the new law applies to it, reports CNBC-TV18's Jude Sannith.
Visakhapatnam is home to manufacturing, IT and steel, and almost all the companies have to rejig their hiring practices.
There is some degree of uncertainty whether Vizag's IT industry will be impacted by the employment of locals. As far as the industry is concerned, the confusion is whether or not the IT sector falls under the category of an 'establishment' or an 'industry'. Many experts say that the rule would prompt IT firms to look beyond Andhra.