Zerodha co-founder Nithin Kamath wrote on X that India’s growth will forever remain uneven because of structural unemployment, and he suggests the Indian government must make startup culture mainstream across all of India and not just in big cities.
“One of the biggest challenges the Indian economy faces is structural unemployment among youth. Growth will always be uneven unless this improves.
Part of the solution is to do everything to encourage entrepreneurs, even in small towns and villages in India. VCs will never go to these areas. Which means other wealthy people are the best hope.” Kamath wrote on X.
Zerodha CEO Kamath hopes the upcoming Budget will address Section 54F, which exempts tax if you reinvest your profited money from your gold or house sale back into a residential property. The Zerodha co-founder thinks it will make investments in startups mainstream. He acknowledges the risks but opines that the benefits far outweigh the risks.
Kamath added, “One of the things I hope the budget addresses is section 54F. This section offers tax exemptions on the capital gains earned from the sale of any asset if the proceeds are reinvested in a residential property.
Including investments in startups along with investments in residential property can make startup investing mainstream. Even though some people may misuse the law, the potential upside is infinitely greater and worth the minor risk.”
India's Job Crisis:
The problem with India is, the economy is growing steadily but there aren’t many jobs, or at least they are not good ones. Because of it, number of people working in the unorganised sector is growing.
The government is worried because if they don't create more jobs, especially for young people with education, India could miss out on its potential to become one of the greatest economies of the world.
Kamath suggests that the government needs to make it easier for businesses to grow, and allow more job creation.
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