Capitalism based on free market only solution to alleviate poverty: Murthy

Murthy said that over the years, he has transformed from a 'confused leftist' to a 'determined compassionate capitalist'

Capitalism, grounded in the twin pillars of a free market and entrepreneurship, is the singular solution to addressing the issue of poverty in India and any country, N R Narayana Murthy, co-founder of Infosys, said during a fireside chat moderated by Nikhil Kamath, co-founder of the brokerage platform Zerodha.

“The government should function as a fair and transparent regulator. On the entrepreneurs’ side, they must recognise themselves as evangelists for capitalism. Capitalism is relatively new in India, and it’s not enough for entrepreneurs to simply seek a free market. They need to bring fairness, transparency, and accountability to the operation of their enterprises. Decisions should positively impact even the lowest-level employees,” Murthy emphasised during the Bengaluru Tech Summit.

Murthy reflected on his personal evolution from a “confused Leftist” to a “determined compassionate capitalist”. He stressed that as capitalism evangelists, citizens should be willing to accept a higher level of taxation, especially in developing countries compared to developed ones.

Applauding the government’s National Education Policy, Murthy deemed it a step in the right direction. “The need of the day is to instil independent thinking, active listening, critical thinking, and the ability to relate classroom learning to real-world problems in the minds of children,” he added.

Regarding Bengaluru’s status as the country’s technology capital, contributing around 35-37 per cent of the total software exports amounting to about $75 billion, Murthy suggested that the state should facilitate the opening of more English medium schools to enhance the city’s attractiveness. He also stressed the urgency of improving the city’s infrastructure, citing China’s quick decision-making processes as an example.

“People in the infrastructure industry must work three shifts a day. Merely working a single shift from 11 am to 5 pm is not sufficient. In nations with high aspirations, I’ve witnessed people working at least two shifts. I can vouch for two shifts of work,” he stated.

Murthy attributed Bengaluru’s growth to its hospitable, accommodative, welcoming, and kind population, noting Karnataka’s long-standing reputation for producing skilled engineers.

To achieve a high gross domestic product per capita, Murthy urged political leaders to carefully study China, emphasising that this recommendation is separate from geopolitical considerations.