NR Narayana Murthy
and S ‘Kris’ Gopalakrishnan, the founder and co-founder of
Infosys
respectively, have urged the incoming government in New Delhi to implement policies that foster entrepreneurship, leading to
job creation
, wealth generation, and increased tax revenue. With less than a month remaining before the new government takes charge, they have emphasized the importance of supporting
entrepreneurs
in addressing the country’s poverty issues.
ET quoted Narayana Murthy as saying, “They (entrepreneurs) convert an idea into jobs for people, into wealth for themselves and their investors, and into taxes for the country. Therefore, it is desirable that all public governance systems completely remove any hassle for entrepreneurs so that they can accelerate creation of jobs and wealth, and payment of taxes to the government. That is the ideal thing for a developing country.”
He stressed that no country has successfully tackled poverty without encouraging entrepreneurship and urged the new government to fully embrace “compassionate capitalism” while allowing entrepreneurs to operate freely.
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Gopalakrishnan highlighted the need for increased public and private investment in research, as well as the importance of simplifying processes for startups. He said that the new government should prioritize ease of doing business and improving the quality of life for ordinary citizens.
Murthy added that those who break the law should face severe consequences, while the vast majority of honest and law-abiding individuals should be allowed to progress quickly, creating jobs and paying taxes, which will benefit the country and future generations.
Kris Gopalakrishnan
urged the newly elected government to address the long-standing issue of angel tax on startup investments. “We have been talking about it (angel tax) for many years. And I still get income-tax notices asking me at what valuation I invested. So, these things must be looked at,” he said. “As Murthy said, we make the rules for the 5% of people who cheat the system, or who game the system.”
Narayana Murthy concurred with Gopalakrishnan’s view, acknowledging that a small fraction of people will always attempt to game the system in any country.
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In their roles at the Infosys Science Foundation, Gopalakrishnan and Murthy advocated for policies that encourage private companies to donate equity shares to leading research institutions. Gopalakrishnan stressed that government support would boost the confidence of these institutions in accepting such donations.
He highlighted the lack of investment committees or proper mechanisms in many institutions to handle equity share donations. Gopalakrishnan believes that government backing would streamline and clarify the process, which currently relies on the initiative of individuals and boards.
Murthy expressed his support for the idea, stating, “As long as there is a very clear process for accepting, holding and managing equities donated by any well-wisher, why not?” He shared his own experience of attempting to donate Infosys shares to IIT, Kanpur, and his wife’s effort to donate to IISc around 1995. However, the regulations at that time only permitted cash donations. Murthy noted that Infosys shares have since grown by more than 768 times, emphasizing the potential impact of such donations.
Gopalakrishnan acknowledged that regulations have undergone significant changes since their initial attempts to donate equity shares in the mid-1990s.
According to Murthy, the disposable income of individuals seems to be increasing. He observed that in his middle-class neighborhood in Bengaluru, numerous new establishments, including affordable food outlets, have emerged in recent years.
“I see a lot of people selling fruits and vegetables at street corners. What this means is the disposable income of the middle class and lower middle classes has increased,” he said. Murthy emphasized that his observations stem from his own middle-class and lower middle-class residential area. He believes that these observations serve as reliable indicators of an improving economy and increased disposable income among the middle and lower-middle classes.
