Narayan Murthy suggests that when people benefit from freebies, it works even better if they, in turn, give something back to society. According to him, nothing should be handed out without some form of contribution in return.
‘Nothing should be given for free’ Narayan Murthy says
During a conversation with Zerodha’s Nikhil Kamath at the Bengaluru Tech Summit on November 29, Infosys co-founder NR Narayana Murthy openly expressed his reservations about freebies, stating firmly that “nothing should be handed out for free.” He went on to share his belief that compassionate capitalism could pave the way for a ‘poor’ country like India to transform into a developed nation.
At the 26th edition of the Bengaluru Tech Summit, Narayan Murthy emphasized the idea that when services or subsidies are provided, there should be a reciprocal commitment. Using an example, he suggested that if the government were to offer free electricity, it would be even better if there was an agreement in place, like improving attendance in primary and middle schools by 20 percent. It’s all about fostering a sense of responsibility and collaboration in exchange for the support provided.
In simple terms, Murthy made it clear that nothing should come without a sense of contribution, and citizens ought to play a role in shaping a stronger society. While not completely against freebies, Murthy suggested that those benefiting from free subsidies should shoulder additional responsibility for improving the education and future prospects of their upcoming generations.
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He emphasized that he understands the significance of free services, drawing from his own experience of coming from a humble background. However, Murthy believes it’s fair to expect something in return from those who receive these free subsidies. In his view, this could involve taking on a slightly bigger responsibility to ensure a better future for their children and grandchildren, including their education and overall well-being.
When discussing the appropriate level of taxation in India, Murthy highlighted the economic reality, saying, “Let’s understand, India is a country facing financial challenges. With a per capita GDP of around USD 2,300, we’re just about twice the mark that qualifies as ‘low-income countries’ according to the United Nations and other organizations. We’re still quite a way off from being classified as a middle-income country, where per capita GDP ranges from USD 6,000 to about 12,000 to 15,000.”
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In a country like India, grappling with a significant population living in poverty, Murthy expressed the view that advocates of capitalism, like himself, should be willing to shoulder a higher level of taxation. This is because the government has the responsibility to provide numerous services to the less privileged. He referenced a recent statement by the Prime Minister about providing free ration to 800 million people over the next five years, underscoring the immense need to support those who struggle to secure even two meals a day.
“In the quest to build an efficient, corruption-free, and effective system for public goods in our country, it’s evident that taxation needs to be higher than what you typically find in developed nations. Personally, I wouldn’t mind paying a bit more in taxes,” he added.
Narayana Murthy shared the evolution of his perspective, moving from a staunch leftist to a “determined compassionate capitalist.” For him, compassionate capitalism, not socialism or communism, is the key for a country like India to move from poverty to prosperity.
He firmly believes that capitalism, rooted in the principles of a free market and entrepreneurship, offers the best solution to address poverty in any nation.
When asked for advice on boosting per capita GDP, Murthy suggested that political leaders should take a close look at China. “I humbly request our political leaders to carefully study China and learn from its successes, so that India can progress at a similar pace, reducing poverty and uplifting its people,” Murthy said.