Kamath, however, acknowledged that there has been a palpable change in the broader mindset and believes that the emerging crop of new investors will be more forthcoming in supporting Indian entrepreneurs.
The government should find ways to encourage more Indians to back local entrepreneurs who primarily bank on external investors to start new ventures, Nithin Kamath, founder and CEO, Zerodha said on Tuesday.
“The government needs to encourage people to think about moving money away from gold, bank deposits and real estate. Once money goes into these assets, they get locked in. It is not helping the economy in any way. I think incentives have to be made to get people to look at investing. We need people of this country to be backing the entrepreneurs of this country. If this happens, we do not have to rely on foreign capital as much as we rely today,” Kamath said at the 15th India Digital Summit. Kamath was in conversation with Sunil Jain, managing editor, Financial Express.
Kamath, however, acknowledged that there has been a palpable change in the broader mindset and believes that the emerging crop of new investors will be more forthcoming in supporting Indian entrepreneurs. “I can see people in my generation… we will all probably invest a lot in Indian entrepreneurs as we grow older,” Kamath said.
The CEO, who leads one of the successful brokerage firms in the country, said conscious efforts should be made to keep the wealth of India within the country. “Just doing structural changes to save on some taxes or just to make it easier for an investor… I do not think Indians should go about moving a lot of wealth out of this country,” Kamath said.
The government has been expressing concerns over foreign entities picking up large stakes in start-ups, particularly at the early-stage seed capital and at very low valuations.
Kamath is not worried about India creating far fewer unicorns compared to major markets.
“The problem with the country is the revenue pool. We have a lot of people in this country and for building large businesses, you should be able to make money from this people. Unfortunately, in our country, the issue is that 5-6 crore people file income tax returns. Less than 2 crore people make more than `5 lakh per year as income. But it is just a matter of time before we become an equal in the game,” Kamath said.
Kamath lauded companies like Swiggy, Zomato and Ola for having been able to build robust businesses.
Zerodha, which last year valued itself at $1 billion, aims to broaden its presence in the consumer advisory segment. “That essentially is our next play to find ways to help our customers take the right decision,” Kamath said.