Bengaluru: In a fireside chat with Zerodha’s Nikhil Kamath at the Bengaluru Tech Summit on Wednesday, Infosys co-founder NR Narayana Murthy underscored an unequivocal belief in a higher tax burden for the rich.
“The evangelists of capitalism must accept that we have to pay a higher level of taxation because there are so many public services that the government will have to provide for the poor,” he said.
“In order to create efficient, corruption-free and effective public goods in our country, the taxation will have to be obviously higher than what you see in developed countries,” he explained.
With a per capita income of around $2,500, India is still a long way from becoming a middle-income country, Murthy asserted.
He, however, simultaneously emphasised that subsidies must be accompanied with riders. “Nothing should be given free, but there should be a contribution of the citizen also towards making our society a better place,” he said, adding that the beneficiaries must commit to working towards a better future for the next generation.
Acknowledging a difference in political structure and leaving the balancing of geopolitical relations to the government, Murthy urged policymakers to study the economic growth of China and adopt the best lessons for implementation at home.
Murthy also recounted his transition from a “confused leftist” to a determined “compassionate capitalist” while on a trip to France in his formative years. “Capitalism based on the twin pillars of free market and entrepreneurship is the only solution for any country to solve its problem of poverty,” he opined.
Entrepreneurs, who are the evangelists of capitalism, must contribute a certain percentage of their profits for the betterment of the society, Murthy said, explaining his understanding of “compassionate capitalism”.
Published 29 November 2023, 17:04 IST