The Supreme Court ordered that the quota for veterans’ descendants be cut to 5 per cent, with 93 per cent of jobs to be allocated on merit. The remaining 2 per cent will be set aside for members of ethnic minorities and transgender and disabled people.

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.

Andhra Pradesh IT Minister Nara Lokesh has offered software body Nasscom to expand or relocate their businesses to Visakhapatnam.