N.R. Narayana Murthy Advocates for Capitalism as the Solution to Poverty in India

Co-founder of Infosys emphasizes the importance of entrepreneurship and a fair market in addressing poverty

During a fireside chat at the Bengaluru Tech Summit, N.R. Narayana Murthy, co-founder of Infosys, highlighted the significance of capitalism as a solution to poverty in India. Murthy stressed the need for a free market and entrepreneurship, coupled with fairness, transparency, and accountability, to positively impact the lives of even the lowest-level employees. In this article, we delve into Murthy’s insights on capitalism, his personal evolution as a compassionate capitalist, and his recommendations for fostering economic growth in India.

The Role of Government and Entrepreneurs

Murthy believes that the government should function as a fair and transparent regulator, allowing the free market to thrive. On the other hand, entrepreneurs must see themselves as evangelists for capitalism, going beyond mere profit-seeking to bring fairness, transparency, and accountability to their enterprises. Murthy emphasizes that decisions made by entrepreneurs should have a positive impact on all levels of employees, especially those at the lowest rungs of the organization.

Murthy’s Evolution as a Compassionate Capitalist

Reflecting on his personal journey, Murthy describes his transformation from a “confused Leftist” to a “determined compassionate capitalist.” He acknowledges the importance of accepting a higher level of taxation in developing countries, such as India, compared to developed nations. Murthy believes that citizens should be willing to contribute more through taxes to support social welfare programs and reduce poverty.

The National Education Policy and Independent Thinking

Murthy commends the Indian government’s National Education Policy, stating that it is a step in the right direction. He emphasizes the need to instill independent thinking, active listening, critical thinking, and the ability to relate classroom learning to real-world problems in the minds of children. Murthy believes that a well-rounded education system is crucial for nurturing future entrepreneurs and fostering innovation.

Enhancing Bengaluru’s Technological Advancement

As Bengaluru contributes significantly to India’s software exports, Murthy suggests that the state should facilitate the opening of more English medium schools to enhance the city’s attractiveness. He also highlights the urgent need to improve the city’s infrastructure, using China’s quick decision-making processes as an example. Murthy advocates for a work culture that includes multiple shifts, citing the example of nations with high aspirations where people work at least two shifts a day.

Bengaluru’s Growth and Skilled Workforce

Murthy attributes Bengaluru’s growth to its hospitable, accommodative, welcoming, and kind population. He notes that Karnataka has a long-standing reputation for producing skilled engineers, which has contributed to the city’s success. Murthy encourages political leaders to study China’s economic growth to achieve a high gross domestic product per capita, emphasizing that this recommendation is separate from geopolitical considerations.


N.R. Narayana Murthy’s insights shed light on the potential of capitalism to address poverty in India. He emphasizes the importance of a fair market, entrepreneurship, and the role of both the government and entrepreneurs in creating a positive impact on society. Murthy’s personal transformation as a compassionate capitalist and his recommendations for fostering economic growth in India provide valuable insights for policymakers and citizens alike. As India continues to strive for progress, Murthy’s ideas serve as a guiding light towards a more prosperous future.






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