Nation needs to embrace compassionate capitalism, says Narayana Murthy

Infosys founder N.R. Narayana Murthy on Tuesday said that the country needs to embrace "compassionate capitalism."

Murthy, who was participating in the All India Management Association's (AIMA) foundation day celebrations, said on the sidelines of the event that compassionate capitalism should be embraced universally.

Addressing a question on loss of human resources due to brain drain, he said it can only happen if leaders of the country ensure that Indian youngsters are not put to any inconvenience.

In return, India too should offer comfort to people about capitalism by ensuring that high growth and high earnings are provided to all, he said.

Touching upon the issue of layoffs, Murthy said that it seems to have become a worldwide phenomenon as several companies are indulging in it.

Citing the example of the times in 2001 when Infosys faced a downturn, Murthy said that the senior management took the biggest salary cut, followed by the next level which took a slightly lower pay cut.

In such situations, youngsters are not at fault as it is the companies who fail to see the foresee the downturn.

Downturns are part of the business cycle. It's part of the existence of any corporation, he said.

Touching upon other aspects, the Infosys founder said that manufacturing productivity is improving.

He further added that now youngsters are more attuned towards manufacturing than earlier.