<?php echo html_escape(strip_tags($title)); ?>

Government to find ways to Support Local Entrepreneurs

Govt. should find ways to encourage more Indians to support local entrepreneurs: Zerodha CEO

By Najma Hashemi --
Saturday, 23 Jan, 2021

On Tuesday, Nithin Kamath, founder and CEO, Zerodha said: "The government should find ways to encourage more Indians to back local entrepreneurs who primarily bank on external investors to start new ventures."

“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,” said Kamath in a conversation with Sunil Jain, managing editor, Financial Express at the 15th India Digital Summit.

However, Kamath affirms that there has been a significant change in the wider mindset and believes that the emerging product of new investors will be more oncoming 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,” said Kamath.

The CEO, who leads one of the successful brokerage companies in the country, said: "to preserve the wealth of India within the country the conscious endeavors should be made. “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 investments increasing in their share in start-ups, particularly at the early-stage seed capital and at very low valuations.

Kamath is not thinking of the very less number of unicorns generated in India compared to the global market as a concern; “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 pointed out companies like Swiggy, Zomato and Ola for having been able to set up progressing businesses.

Govt. should find ways to encourage more Indians to support local entrepreneurs: Zerodha CEO. On Tuesday, Nithin Kamath, founder and CEO, Zerodha said: "The government should find ways to encourage more Indians to back local entrepreneurs who primarily bank on external investors to start new ventures."

“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,” said Kamath in a conversation with Sunil Jain, managing editor, Financial Express at the 15th India Digital Summit.

However, Kamath affirms that there has been a significant change in the wider mindset and believes that the emerging product of new investors will be more oncoming 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,” said Kamath.

The CEO, who leads one of the successful brokerage companies in the country, said: "to preserve the wealth of India within the country the conscious endeavors should be made. “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 investments increasing in their share in start-ups, particularly at the early-stage seed capital and at very low valuations.

Kamath is not thinking of the very less number of unicorns generated in India compared to the global market as a concern; “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 pointed out companies like Swiggy, Zomato and Ola for having been able to set up progressing businesses.