Indian retail investors and wealthy citizens largely stay away from investing in startups, resulting in heavy dependence on foreign venture capitalists and big investment houses. CEO of Zerodha, Nithin Kamath, suggests incentivising them with tax relief and capital gains exemption for startup investments, similar to the UK, to utilise local wealth stuck in fixed assets. Kamath believes wealth creation must be captured by a vast number of Indians to spread wealth inclusively and not just the elite, which can only happen when retail investors move assets to back Indian entrepreneurs.
