Zerodha’s Nithin Kamath flags India’s AI lag as China surges ahead, calls for innovation-driven growth – Trending News

Zerodha founder and CEO Nithin Kamath has raised concerns about India’s lagging progress in artificial intelligence (AI) and technology, warning that the country’s short-term approach to problem-solving is hindering its ability to compete on a global scale.

In a recent post, Kamath compared India’s trajectory with China’s, noting that both countries had similar per capita GDPs in the 1960s and 1970s. However, China’s rapid economic and technological advancements since the 1980s have allowed it to surge ahead, leaving India struggling to catch up.

China’s AI Leap: A Missed Opportunity for India?

Kamath cited China’s latest AI success, DeepSeek, as an example of what India is missing out on. Developed with just $6 million, DeepSeek has already surpassed OpenAI’s models, topped the iOS App Store, and outperformed Meta in the open-source AI space.

“Say what you will about the differences in our worldviews and economic models, but their scientific and technological progress is undeniable across disciplines—DeepSeek is just the latest example,” Kamath stated.

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

This development has triggered a debate among Indian tech leaders, with many questioning why India is not at the forefront of AI innovation.

‘Jugaad Mentality’ Holding India Back

Kamath believes the problem lies not just in funding or infrastructure but in India’s tendency to favor short-term fixes over long-term investments. “Problems are typically addressed through a patchwork or the Jugaad mentality,” he explained, emphasizing that India’s political, business, and regulatory approaches often focus on temporary solutions instead of sustainable growth.

Brain Drain & Lack of Research Ecosystem

Kamath also pointed out that India is losing top AI talent to countries like the United States, where research opportunities are more abundant.

“You can’t just buy GPUs and expect Indians to create groundbreaking AI applications,” he said, stressing that without the right talent and a supportive ecosystem, hardware investments alone won’t be enough.

A Call for Systemic Change

Kamath urged India to build a robust research ecosystem, warning that progress in AI requires patience and long-term investment. “China dedicated at least two decades to research before seeing major breakthroughs. If India starts now, we could see results in 5 to 10 years,” he said.

As AI continues to reshape global industries, Kamath warned that India cannot afford to remain mediocre. “Being mediocre won’t be an option,” he concluded, calling for systemic changes to foster AI innovation in the country.

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