Zerodha Co-Founder Nithin Kamath: Structural Unemployment Hindering Balanced Growth in India
Nithin Kamath, co-founder of Zerodha, recently highlighted on X that India’s economic growth will remain uneven due to structural unemployment among the youth. He called on the government to promote startup culture across all regions, not just in major cities.
Kamath wrote, “Structural unemployment among youth is one of the biggest challenges facing the Indian economy. Growth will remain uneven unless this issue is addressed. Encouraging entrepreneurship in smaller towns and villages is crucial, as venture capitalists typically overlook these areas. Wealthy individuals could play a significant role in bridging this gap.”
He expressed hope that the upcoming Budget will address Section 54F, which provides tax exemptions for reinvesting profits from the sale of gold or property into residential real estate. Kamath believes extending these exemptions to startup investments could mainstream entrepreneurial funding. While acknowledging potential misuse, he argues that the benefits would outweigh the risks.
Kamath added, “I hope the budget considers including startup investments under Section 54F. This change could significantly boost startup funding, even though there might be some misuse. The potential benefits far exceed the risks.”
Kamath also noted India’s growing job crisis, where economic growth is not translating into sufficient employment opportunities, particularly in the organized sector. He stressed the need for policies that facilitate business growth and job creation to fully realize India’s economic potential.