Nikhil Kamath Says India Can Learn From China’s Competitive Model to Build Global Tech Giants
Nikhil Kamath, co-founder of Zerodha, believes India can learn important lessons from China’s approach to economic development and technology innovation. Speaking at the NDTV World Summit 2026, he suggested that Indian states should compete more actively with one another to attract businesses, encourage innovation and build stronger technology ecosystems.
During a conversation with NDTV CEO and Editor-in-Chief Rahul Kanwal, Kamath compared state chief ministers with corporate CEOs, arguing that greater competition between states could help India achieve its economic ambitions.
He also highlighted a major challenge facing Indian technology startups: access to risk capital, particularly for companies developing advanced artificial intelligence models and other frontier technologies.
Nikhil Kamath Wants Chief Ministers to Think Like CEOs
Kamath suggested that Indian states could benefit from a more competitive approach to governance, similar to the rivalry between provinces and cities in China.
According to him, local administrations in China often compete to attract investment, develop infrastructure and encourage business activity. He believes a similar mindset could help Indian states improve their economic performance.
Kamath proposed that chief ministers should approach their responsibilities with the mindset of corporate leaders, focusing on growth, execution and measurable results.
He explained that competition between states could encourage governments to improve business conditions and create more opportunities for entrepreneurs.
The idea is to make states more proactive in attracting investment and developing industries rather than relying solely on national-level policies.
India Needs More Risk Capital to Compete in AI
Another major point raised by Kamath was the shortage of risk capital available to Indian companies working on advanced technologies.
He said companies developing frontier AI models in the United States and China have access to substantially larger pools of capital, allowing them to experiment, invest in research and absorb potential losses.
Building advanced AI systems requires significant spending on computing infrastructure, specialised talent, data centres and research. Without sufficient financial backing, Indian companies may find it difficult to compete with well-funded international players.
Kamath acknowledged that launching a business in India can be considerably cheaper than in many other markets. However, lower operating costs alone may not be enough to overcome the financial gap faced by companies attempting to build world-class technology.
He suggested that access to patient, high-risk investment could be essential if India wants to establish globally competitive technology companies.
China’s Approach to State-Level Competition
Discussing China’s technology ecosystem, Kamath pointed to competition between provinces and municipalities as a model India could study.
He observed that local leaders in China often behave as though they are running competing organisations, each seeking investment and economic growth.
Kamath argued that Indian states could adopt a similar approach by developing distinct strengths, improving infrastructure and creating attractive conditions for businesses.
Such competition could potentially encourage states to become more efficient and responsive to the needs of companies and investors.
However, adapting this model to India would require balancing competition with cooperation between states, while respecting the country’s democratic institutions and federal structure.
India Has an Advantage in Infrastructure Costs
Despite concerns about funding, Kamath also highlighted India’s potential advantages in building technology infrastructure.
He pointed to the relatively lower cost of establishing data-centre infrastructure and the comparatively affordable power available in India compared with some international markets.
According to his remarks at the summit, the cost of developing certain power and infrastructure capacity in India could be 30–40% lower than in Western markets.
These cost advantages could make India an attractive destination for companies looking to expand computing capacity and develop AI infrastructure.
However, infrastructure costs are only one part of the equation. Access to reliable electricity, advanced chips, skilled professionals and long-term financing will also influence India’s ability to compete in the global AI industry.
Who Is Nikhil Kamath?
Nikhil Kamath is an entrepreneur and investor best known as the co-founder of Zerodha, one of India’s largest stockbroking companies. He has also invested in businesses across several sectors, including food, consumer products and electric mobility.
His investment portfolio has included companies such as Licious, Nourish You, Pee Safe, Subko and Ather Energy.
Beyond business, Kamath is involved in philanthropy and environmental initiatives. He has signed the Giving Pledge, committing to donate at least half of his wealth to charitable causes.
His views on AI investment and state-level competition come at a time when India is seeking to strengthen its startup ecosystem and establish a more significant position in the global technology industry.
What Kamath’s Suggestions Could Mean for Indian Startups
Kamath’s remarks highlight two important issues for India’s next phase of economic growth: access to capital and the quality of the business environment.
For startups, stronger investment opportunities could help turn promising ideas into scalable businesses, particularly in capital-intensive sectors such as artificial intelligence, semiconductor technology and advanced computing.
At the state level, greater competition to attract entrepreneurs and investors could encourage improvements in infrastructure, regulatory processes and access to skilled talent.
India already has a large domestic market, a growing technology workforce and a strong startup ecosystem. Combining these advantages with deeper pools of risk capital and effective state-level policies could improve the country’s ability to produce globally competitive companies.
