Zerodha founder and CEO Nithin Kamath has raised concerns about India’s lag in artificial intelligence (AI) and technology compared to China. He said that the issue extends beyond funding and pointed towards structural and cultural challenges in India’s approach to innovation.
In a post on Wednesday, Kamath noted that India and China had similar per capita GDP in the 1960s-70s, but China’s economic reforms in the 1980s led to faster progress. "By 1990, they had overtaken our per capita GDP," he wrote.
He gave example of China’s recent AI access with DeepSeek. The new Chinese AI has outperformed OpenAI’s ChatGPT and gained traction in the industry at a much lower cost.
In the 1960s-1970s, India and China had roughly the same per capita GDP. They started their reforms in the 1980s, and by 1990, they had overtaken our per capita GDP. Say what you will about the differences in our worldviews and economic models, but their scientific and… pic.twitter.com/SSddVpEoOB
— Nithin Kamath (@Nithin0dha) January 29, 2025
Kamath attributed India’s slower progress in AI to a short-term approach. ”Problems are typically addressed through a patchwork or the Jugaad mentality," he said. He added that this mindset affects business, politics, and regulation in India.
He stressed that AI development requires long-term planning, not just investment in hardware like GPUs.
"The right talent and an enabling ecosystem are necessary for AI innovation. Without them, all the GPUs in the world will be pointless," Kamath explained.
Also read: Another psyops? DeepSeek AI serves as an extension of Chinese state propaganda
He also pointed out that many Indian researchers move abroad due to the lack of a supportive environment.
While drawing a comparison with China, Kamath said there was a need for sustained investment in research. "It took China at least two decades of focused research. If we start now, results may take 5 to 10 years," he said.
With AI set to reshape industries, Kamath warned that India must move beyond incremental fixes. "Being mediocre won’t be an option," he concluded.