Narayana Murthy opposes freebies, says job creation is key to ending poverty

At a time when political parties are competing to offer freebies ahead of elections, Infosys co-founder NR Narayana Murthy has warned against such policies, arguing that job creation—not handouts—will eliminate poverty in India.

Speaking at an entrepreneurship event in Mumbai on Wednesday, Murthy, 78, said, "Poverty will vanish like dew on a sunny morning if entrepreneurs can create innovative enterprises." He emphasized that no country has successfully eradicated poverty through free benefits alone.

Murthy, who previously sparked debate by advocating for a 70-hour workweek for young professionals, clarified that he is not a policymaker but urged the government to rethink welfare measures. He suggested that instead of unconditional freebies, there should be accountability and measurable impact.

Citing free electricity as an example, he proposed that the government conduct random household surveys after six months to assess whether such benefits had improved education levels or parental involvement in children’s studies.

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Murthy’s remarks align with concerns raised by the Supreme Court, which recently criticized election-time freebies, stating that they discourage people from working.

A bench comprising Justices BR Gavai and Augustine George Masih noted last month that the practice of providing free rations and cash transfers was creating a dependent class rather than integrating them into the workforce. "Rather than making them part of mainstream society and contributors to national development, are we not creating a class of parasites?" the court asked.

The bench also questioned schemes such as 'Ladki Bahin,' which promise direct financial assistance before elections, suggesting that such incentives reduce the motivation to work.

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India, the world’s most populous country, provides free monthly rations to over 80 crore people, in addition to various direct cash transfer schemes. While these measures have helped millions, critics argue that excessive reliance on government aid could hinder economic progress.

Murthy’s statement has reignited the debate on balancing welfare with economic growth, as India heads into a crucial election season where political parties are using populist promises to woo voters.