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Introduction
Narayana Murthy, the founder of Infosys, has long been a prominent advocate for ethical business practices. In his recent address at TiE Con Mumbai 2025, Murthy passionately discussed the importance of treating employees with respect, bridging income disparities, and embracing a more humane form of capitalism. He also shared his thoughts on India’s economic development, urging the country to move beyond its socialist mindset and fully adopt a more capitalist approach that fosters opportunity and prosperity. During the same conversation, Murthy weighed in on the growing buzz around artificial intelligence (AI), highlighting its limitations and the misunderstanding surrounding the technology in India.
the Original
At TiE Con Mumbai 2025, Narayana Murthy emphasized the need for businesses to adopt “compassionate capitalism.” He stressed that companies should not only respect their employees but also work towards reducing pay disparities and ensuring that the benefits of the organization are fairly shared among its workforce. According to Murthy, capitalism, when practiced with compassion, could contribute significantly to India’s economic progress, including poverty alleviation.
He highlighted that India’s socialist tendencies have hindered its development, and he believes that true growth can only happen by embracing a capitalist mindset that values new ideas, wealth creation, job opportunities, and tax contributions to the country’s public services.
Further, Murthy expressed his concern over how capitalism is perceived in India, urging entrepreneurs to act as ambassadors of the concept. He stated that actions speak louder than words, and entrepreneurs must lead by example to dispel skepticism about capitalism’s benefits.
In addition to his views on capitalism, Murthy also commented on the growing enthusiasm around artificial intelligence (AI) in India. He noted that many programs are being marketed as AI, but he explained that genuine AI has two distinct components: machine learning and deep learning. While machine learning relies on large-scale data correlation for predictions, deep learning attempts to mimic the human brain’s functionality.
What Undercode Says
Narayana Murthy’s call for “compassionate capitalism” resonates with the challenges facing the modern corporate world. In an era where income inequality and employee exploitation have become significant issues, his plea for businesses to share the fruits of their labor more equitably is both timely and relevant. By proposing a balance between profit-making and compassion, Murthy advocates for a system that not only generates wealth but also uplifts the community and employees.
However, while Murthy is right in pointing out the flaws in India’s existing socialist framework, he must acknowledge the complexities involved in transitioning from a socialist to a capitalist mindset. The country’s economic history, deeply rooted in welfare policies, requires a more nuanced approach to integrate capitalism’s benefits without exacerbating inequality.
Moreover, Murthy’s advocacy for entrepreneurs to act as “evangelists” of capitalism is a strong point. Entrepreneurs, particularly those in the tech and startup space, hold significant sway in shaping the perception of capitalism in India. If they lead by example—by prioritizing fairness and responsibility alongside profit—it could set a new standard for corporate behavior across the country.
On AI,
Fact Checker Results
✅ Murthy’s advocacy for “compassionate capitalism” aligns with global movements for more humane corporate practices.
✅ His stance on India’s socialist history and the need for a capitalist shift is backed by historical economic data, which shows that socialism has hindered entrepreneurship.
❌ Murthy’s comments on AI do not fully capture the range of applications AI has today in India; the scope of AI extends far beyond the two categories mentioned.
Prediction
Looking ahead, India’s business landscape is likely to see a shift towards more ethical and compassionate corporate practices, as more entrepreneurs adopt Murthy’s ideas of fair wealth distribution and respect for employees. However, the real challenge will be for Indian businesses to implement these ideals on a large scale, especially in industries that have historically been focused on maximizing profits. As for AI, India will likely experience a more informed understanding of the technology, with clearer distinctions between machine learning, deep learning, and general AI applications.
References:
Reported By: timesofindia.indiatimes.com
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