Author: Nishtha Mehrotra | EQMint

Synopsis:

• Zerodha co-founder Nikhil Kamath argues that Indian chief ministers should adopt a CEO-like approach to governance and economic development.
• He calls for every Indian state to compete for investments, drawing a comparison with China’s approach to attracting businesses.
• The message highlights the importance of investment-friendly policies, efficient administration and competition between states in driving economic growth.
  
  

Why Kamath Wants Chief Ministers to Think Like CEOs

Zerodha co-founder Nikhil Kamath has called for Indian chief ministers to adopt a business-oriented approach to governance, arguing that states should compete with one another to attract investments and accelerate economic growth.

Speaking at the NDTV World Summit 2026, Kamath pointed to China’s model, where local governments compete to attract businesses, develop industries and strengthen their economies. He questioned why India’s states could not follow a similar approach.

Kamath suggested that chief ministers could function like corporate CEOs, with incentives linked to their states’ economic performance. He also argued that states should be allowed to retain a greater share of the financial benefits generated by their economic initiatives.

What India Can Learn From China

China’s local governments have supported industrial development through investments, infrastructure and incentives for businesses. The approach has helped cities such as Hefei build positions in industries including display manufacturing and electric vehicles, although it has also created risks such as excess capacity and inefficient investment.

For India, stronger competition between states could encourage better infrastructure, business-friendly policies, faster approvals and improved investment conditions.

However, the challenge lies in ensuring that competition delivers sustainable development rather than short-term investment announcements. Effective governance, transparency and accountability would remain essential.

Kamath’s proposal puts the focus on a central question: can greater competition among Indian states help the country attract more capital, create jobs and strengthen its economic position?

Disclaimer: This article is for information purposes only and is not investment advice.

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