Zerodha’s Nithin Kamath: DeepSeek Proves Jugaad Won’t Cut It!

Zerodha CEO Nithin Kamath has raised critical concerns regarding India's approach to innovation, particularly in the realm of artificial intelligence (AI). In a recent tweet, he emphasized that India's "Jugaad" mentality—characterised by short-term, makeshift solutions—has become a hindrance to sustainable progress.

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

He pointed out that while India and China had similar economic standings in the 1960s and 1970s, China's strategic investments in long-term research have propelled it ahead in technological advancements, exemplified by its latest AI model, DeepSeek.

Kamath articulated that simply acquiring advanced technology, such as GPUs, is insufficient for fostering innovation. He stated, "Without the right talent and an enabling ecosystem… all the GPUs in the world will be pointless."

This highlights a significant issue: India's failure to create a conducive environment for researchers has led to a brain drain, with many talented individuals seeking opportunities abroad, particularly in the United States. He noted that while India produces capable researchers, the lack of support and infrastructure drives them away.

The urgency for systemic change is palpable. Kamath argues that India must shift its focus from quick fixes to building robust research capabilities. He suggests that if India begins investing in research now, it could see tangible results in five to ten years, similar to China's two-decade commitment to research before achieving breakthroughs.

DeepSeek's emergence underscores this need for innovation. Developed by a Chinese startup, it has gained attention for matching leading Western AI models like OpenAI's ChatGPT at a fraction of the cost. However, its performance is marred by censorship limitations imposed by the Chinese government. As Kamath warns, without a shift towards genuine innovation and long-term planning, India risks falling further behind in the global AI race.