Critics, including prominent industry figures like Biocon’s Kiran Mazumdar Shaw, argue that such quotas could stifle the growth of Karnataka's thriving IT sector and are discriminatory. The concerns are not without merit. The IT sector in Karnataka, particularly in Bengaluru, has flourished due to its cosmopolitan nature and the ability to attract talent from across the country and the world. Imposing stringent local hiring quotas could deter investment and hamper the sector’s competitiveness.

The boom in Chennai’s market over the past three years poses strong competition to cities such as Bengaluru, Mumbai, Pune and Hyderabad.