Are India’s next-generation billionaires truly building businesses, or are they just trading, investing, and spending their inherited wealth? Deepak Shenoy, Founder and CEO of Capital Mind, believes the situation isn’t as dire as some might think.
In a post on X (formerly Twitter), Shenoy wrote, “I don’t think it’s majorly wrong if the next gen of successful businessmen trade/invest/spend the money. We are not South Korea or Japan where a few business families are the only big industrialists.”
He argued that investing can be just as impactful as building businesses. “If the next gen of big businessmen invest, they will provide capital to the new startups, founders etc. Ather, for example, got investment from the Hero Group, which could have built it themselves but didn’t have the hunger or drive perhaps (or the inclination). Better to fund the hungry founders who want to make it big. Even if it fails, it’s a good thing – it’s trying things that counts, and we have to fund risk,” he added.
However, what would be truly concerning, according to Shenoy, is if India’s wealthy simply moved their money abroad. “That would hurt us, but luckily that isn’t much the case (there will always be exceptions). Spending in India is also good – it’s a way to create wealth meaningfully.”
Shenoy also pointed out structural challenges that hinder business growth. “And yes, we should get rid of nasty laws that hurt our manufacturing businesses. But we’ve screamed hoarse about this (I have too) for years, regardless of whether rich kids ‘wasted’ time or not,” he concluded.
His post resonated with many. One user commented, “I think the major concern isn't the investing and spending choices of the next gen, whether in India or abroad. It’s the hunger for doing something great that is lacking in these ‘nepo kids’ of business families. Decision-making positions should be in professional hands only.”
Shenoy responded, “It's fine to have hunger to invest rather than hunger to build a business. If the rich allocate capital well, new entrepreneurs will get that money and become rich and so on...”
The debate comes amid concerns from industrialists like Uday Kotak and Harsh Goenka, who have questioned whether India’s next-gen billionaires are moving away from traditional business-building in favor of financial markets and investments. While some view this shift as a loss of entrepreneurial spirit, others, like Shenoy, see it as an evolution in wealth creation.