Narayana Murthy Proposes a Non-Freebie Approach to Eliminate Poverty in India

Infosys Co-Founder N R Narayana Murthy has emphasised that job creation by innovative entrepreneurs, rather than government freebies, is the key to eliminating poverty. Speaking at the TiEcon Mumbai 2025 event, he urged entrepreneurs to focus on building businesses that generate employment, asserting that poverty will disappear if innovative enterprises are created.

The Role of Entrepreneurship in Eradicating Poverty

Murthy stated, “I have no doubt that each of you will create hundreds of thousands of jobs and that is how you solve the problem of poverty, you don’t solve the problem of poverty by freebies, no country has succeeded in that.” He further added that poverty would “vanish like dew on a sunny morning if we are able to create innovative enterprises.” His remarks come amid ongoing debates on the economic burden of government subsidies and welfare schemes. Currently, India provides food security to 80 crore people through monthly cash transfers, highlighting the scale of dependency on such measures.

While addressing the gathering, Murthy clarified that his comments were not politically driven but based on a broader policy framework. He suggested that welfare schemes should have measurable outcomes to ensure they drive positive change.

Need for Incentives and AI’s Overhyped Potential

Murthy provided an example to support his perspective on policy incentives. He proposed that if a government provides 200 units of free electricity per month, it should conduct random surveys after six months to assess whether children in beneficiary households are studying more or if parents’ interest in their education has increased.

In addition to his views on economic policies, Murthy also commented on artificial intelligence, criticising the way AI is currently marketed. He remarked that most AI solutions being sold today are merely “silly, old programmes” touted as futuristic work. He highlighted that AI is fundamentally driven by machine learning and deep learning, implying that its actual potential is often overstated.

Conclusion

Murthy’s address at TiEcon Mumbai 2025 reinforced his belief that innovation and entrepreneurship are the primary drivers of economic progress. He cautioned against an overreliance on welfare schemes and stressed the importance of incentivising policy benefits. Additionally, he called for a more realistic understanding of AI, distinguishing true advancements from exaggerated claims.

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