Zerodha co-founder and CEO Nithin Kamath has recently voiced concerns about India's economic growth model, emphasizing that the nation's ascent to the world's fourth-largest economy might be masking deeper structural issues. In a post on X (formerly Twitter), Kamath stated, "GDP comparisons only tell you so much," highlighting that metrics such as productivity, labor force participation, and research and development (R&D) spending reveal significant gaps in India's growth strategy.

Kamath pointed out that India's R&D expenditure stands at approximately 0.7% of its GDP, which is considerably lower than that of countries like China (2.4%), South Korea (4.8%), and Israel (6%) . He also criticized the prevalent "jugaad" mentality—reliance on quick fixes and improvisation—which he believes hinders long-term innovation and sustainable development.

Drawing comparisons with China's advancements, Kamath referenced China's AI model DeepSeek as an example of the benefits of sustained investment in research and technology. He noted that while India and China had similar per capita GDPs in the 1960s and 1970s, China's commitment to long-term reforms and investment in science and technology has propelled it ahead of India in various sectors .

Kamath's remarks serve as a cautionary note, suggesting that without significant investments in education, research, and a shift towards long-term planning, India's economic growth may not be sustainable in the face of global technological advancements and geopolitical challenges.

Nithin Kamath Highlights Structural Challenges in India's Economic Growth