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.

Speaking at the curtain-raiser for the upcoming Global Investor Meet, "Invest Karnataka 2025," scheduled for February, Siddaramaiah highlighted the state's growth rate of 9.3% over the last decade. He emphasized the government's plan to extend industrial development beyond urban centers, focusing on rural areas like Kalyana Karnataka through targeted cluster development initiatives.