Sep 12, 2024 12:29 PM IST
Zerodha co-founder Nithin Kamath highlighted the trend of Indian companies returning to India to build local products, referring to it as ‘ghar-wapsi’.
Zerodha co-founder Nithin Kamath praised the trend of Indian companies coming back to the country which once incorporated abroad to build products for the local.
Referring to this in a post on X (formerly Twitter) as ‘ghar-wapsi’, he said, “Three years ago, I shared the problem of Indian companies building for India but incorporating outside the country. Now, things are the other way around. How the tables turn!”
This comes as the number of Indian firms with a market capitalisation exceeding $1 billion is at an all-time high.
Nithin Kamath wrote, “Thanks to the bull market and the ease of going public, there’s a ‘ghar-wapsi’ of Indian companies incorporated outside. To add to this, the Ministry of Corporate Affairs formally opened the doors of ‘reverse flipping’ or coming home to India yesterday”.
He also pointed to a recent report by Mario Draghi, the former president of the European Central Bank, which stated that nearly 30% of unicorns founded in Europe between 2008 and 2021 shifted their headquarters abroad, mostly to the US. A similar trend is also being seen in India in reverse as companies recognise the potential of the country’s market, Nithin Kamath said.