Zerodha co-founder Nikhil Kamath says India needs greater access to risk capital and stronger competition among states to strengthen its AI ecosystem and create globally competitive technology companies.
India has the potential to build world-class technology companies, but a shortage of risk capital remains a major challenge for businesses developing advanced technologies. Zerodha co-founder Nikhil Kamath believes the country can address some of these challenges by learning from China’s approach to economic competition and investment.
Speaking at the NDTV World Summit 2026, Kamath discussed how Indian states could compete more actively to attract businesses, encourage innovation and accelerate economic development. He suggested that chief ministers should approach governance with a mindset similar to that of corporate CEOs, focusing on execution, investment and measurable outcomes.
His comments come as India seeks to expand its artificial intelligence capabilities and strengthen its position in the global technology industry.
Nikhil Kamath Suggests a CEO-Like Approach to State Governance
During a discussion with NDTV CEO and Editor-in-Chief Rahul Kanwal, Kamath questioned why chief ministers of Indian states could not compete with one another in a manner similar to business leaders.
He pointed to China, where provinces and municipalities often compete to attract investment, develop infrastructure and promote industrial growth.
According to Kamath, Indian states could benefit from adopting a more competitive approach to economic development. State governments could focus on creating business-friendly environments, improving infrastructure and attracting companies that generate employment and support innovation.
The idea is to encourage each state to develop its own economic strengths rather than follow the same development strategy.
Greater competition could also motivate state administrations to improve the ease of doing business and respond more effectively to the needs of entrepreneurs and investors.
Why India Needs More Risk Capital for AI Startups
Kamath identified access to risk capital as one of the biggest obstacles facing Indian companies attempting to compete in advanced technology markets.
He explained that businesses developing frontier AI models in the United States and China have access to substantial financial resources. This funding allows them to experiment with new technologies, invest in research and continue developing products even when commercial success is uncertain.
Building advanced artificial intelligence systems requires significant investment in computing power, data centres, specialised talent and research infrastructure.
Indian startups may find it difficult to match the spending capacity of international competitors when they cannot secure similar levels of funding.
Kamath noted that starting and operating a business in India can be less expensive than in many other countries. However, lower costs alone may not be sufficient to help Indian companies compete in sectors where research and infrastructure require billions of dollars in investment.
For India to develop globally competitive AI companies, entrepreneurs may need access to larger pools of long-term capital willing to support ambitious and high-risk projects.
What India Can Learn From China’s Economic Model
Kamath highlighted competition between Chinese provinces and municipalities as a potential lesson for India.
He observed that local administrations in China often compete to attract companies, investment and economic opportunities. This competition can encourage local leaders to focus on infrastructure development, industrial expansion and business growth.
He suggested that Indian states could adopt a comparable mindset, with chief ministers acting like CEOs responsible for improving their state’s economic performance.
Such an approach could encourage states to build specialised technology hubs, attract research and development centres and create better conditions for startups.
However, applying this idea in India would require cooperation between governments alongside competition. India’s democratic institutions and federal structure also mean that policies would need to reflect local needs, legal frameworks and regional priorities.
India Could Benefit From Lower Data Centre and Power Costs
Despite concerns about funding, Kamath also highlighted India’s potential advantages in building technology infrastructure.
He pointed to the comparatively lower costs of establishing data-centre infrastructure and the cost of electricity in India relative to several Western markets.
During the summit, he said the cost of developing certain power infrastructure capacity in India could be 30–40% lower than in Western countries.
These cost advantages could make India an attractive destination for companies seeking to expand computing capacity and support AI development.
Data centres are essential to modern AI systems because they provide the computing power required to train and operate advanced models. If India can combine competitive infrastructure costs with reliable electricity, skilled workers and sufficient investment, it could strengthen its position in the global AI market.
Nevertheless, lower costs alone will not guarantee success. Access to advanced chips, dependable power supplies, efficient approvals and substantial financing will also remain important.
Nikhil Kamath’s Views on India’s AI Future
The global AI race has increased pressure on countries to develop their own technology capabilities and reduce dependence on a limited number of international companies.
India has a growing startup ecosystem, a large pool of technology professionals and an expanding domestic market. These factors create opportunities for businesses developing AI products for consumers, enterprises and public services.
However, competing at the frontier of AI involves different challenges from building conventional software startups. Advanced models require extensive computing resources, specialised research teams and sustained financial support.
Kamath’s comments highlight the importance of creating an environment where entrepreneurs can experiment, attract investment and scale their businesses.
A combination of stronger funding networks, competitive state policies and affordable infrastructure could help Indian companies pursue more ambitious technology projects.
Who Is Nikhil Kamath?
Nikhil Kamath is an Indian entrepreneur and investor best known as the co-founder of Zerodha, one of India’s largest stockbroking firms.
He has also invested in businesses across consumer products, food, technology and electric mobility. His investment portfolio has included companies such as Licious, Nourish You, Pee Safe, Subko and Ather Energy.
Alongside his business activities, Kamath has expressed an interest in philanthropy and environmental initiatives. He has signed the Giving Pledge, committing to donate at least half of his wealth to charitable causes.
His remarks at the NDTV World Summit reflect broader questions about how India can support entrepreneurship, increase investment in advanced technologies and create businesses capable of competing internationally.
What Kamath’s Suggestions Mean for Indian Entrepreneurs
For India’s startup ecosystem, the discussion points to two key priorities: access to capital and an environment that encourages business growth.
More risk capital could help startups invest in research, hire specialised talent and develop technology products that require substantial upfront spending. Meanwhile, competition among states could encourage improvements in infrastructure, business regulations and investment opportunities.
State governments could also play a greater role in developing technology clusters by supporting research institutions, improving digital infrastructure and attracting domestic and international companies.
India already has a strong foundation in software services and digital entrepreneurship. The next challenge is to translate these strengths into leadership in more capital-intensive fields, including artificial intelligence and advanced computing.
