‘We’ve a Long Way to Go’: Zerodha CEO Urges Deeper Reform as India Becomes 4th Largest Economy

India’s ascent to the world’s fourth-largest economy is a historic milestone, but Zerodha CEO Nithin Kamath is urging the nation not to rest on its laurels. In a widely discussed post on X, Kamath celebrated the achievement but cautioned that “GDP comparisons only tell you so much,” highlighting persistent gaps in productivity, labour force participation, and—most critically—investment in research and development (R&D).

 

Kamath pointed out that India spends just 0.7% of its GDP on R&D, far below China (2.4%), South Korea (4.8%), and Israel (6%). He warned that this chronic underinvestment is both a government and private sector problem, and risks stalling India’s long-term growth if not addressed through systemic reforms. “Unless we build an ecosystem that invests in education and research, not only will our best minds leave India, but higher long-term growth rates will remain out of reach,” Kamath wrote.

 

He called for a collaborative push between government, private industry, and academia to transform education, streamline regulations, and create incentives for innovation. Without such efforts, Kamath warned, India could miss out on fully realizing its demographic dividend and global potential—especially in an era shaped by rapid technological change and artificial intelligence.

 

Source: Business Standard, NDTV Profit, Fortune India, Business Today