The state of Karnataka in southern India has decided to halt a controversial bill that aimed to enforce job quotas for locals in private companies. This decision came after significant opposition, particularly from technology firms operating in the region.

Initially approved by the state cabinet, the bill mandated that 70% of non-managerial and 50% of managerial positions in private firms be reserved for local residents. This move sparked protests from business leaders and opposition politicians alike.

Chief Minister Siddaramaiah, responding to the backlash, announced that the bill would undergo further review in the next cabinet meeting before any final decision is made. This announcement followed criticism after Siddaramaiah had earlier tweeted that the bill would ensure “100%” of jobs for Kannadians, referring to natives of Karnataka.

The contentious aspect of the bill centered around concerns that it could potentially harm the thriving tech industry in Bangalore, the state capital and a hub for global IT giants like Google and Infosys. The city attracts talent from across India due to its numerous IT and engineering colleges, making it a cosmopolitan melting pot of skilled professionals.

Critics of the bill argue that such quotas could deter investment and innovation, pushing companies to relocate and hampering the growth of startups. The National Association of Software and Service Companies, representing the tech industry, expressed disappointment and sought urgent discussions with state authorities to address their concerns.

Local sentiment supporting the bill stems from fears that outsiders are taking away job opportunities from Kannadigas. However, opponents argue that such measures could undermine the city’s inclusive image and its position as a global tech leader.

This isn’t the first time Karnataka has faced controversy over laws favoring locals.