States mandating reservation for residents in private companies: Inputs Sought

Recently Andhra Pradesh announced that state residents will have 75% reservation in all jobs including all private companies. Subsequently, MP announced a similar 70% reservation for locals in all jobs including private companies. Other states may follow this trend too for political mileage. We would like to seek your inputs on whether this is good, ok or a dangerous trend that will keep businesses and capital away from such states. Also, if you have additional inputs on the current Caste based Reservation or the newly proposed 10% Economic States based Reservation, kindly share the same as well.

For reference, below are the issues that some of you had outlined with how reservation works in India. We look forward to your inputs!

Reservation System:Key Issues
1.Caste based Reservations are the biggest enemy of meritocracy
2.Caste based reservation system leads to breeding of corruption
3.Beneficiaries under this system are taking advantage of it
4.It leads to undeserving people getting jobs, promotions, admissions in schools\/colleges, etc.
5.On the other hand, it leads to deserving people being left in a state of lurch
6.This also leads to brain drain and capable people looking for jobs elsewhere
7.People with caste based reservations get an upper hand when it comes to jobs
8.Selection criterion for them are set at low standards
9.People get good government jobs through their quota but are not able to do justice to their work
10.Families who are financially pretty well off also use the quotas and try to rake in as much as possible
11.This reservation system propagates politics and causes many demonstrations leading to violence. more