Paytm founder Vijay Shekhar Sharma backs market economy amid Capitalism vs Socialism debate

As the debate over capitalism versus socialism resurfaces in India’s public discourse, leading startup founders are weighing in to defend the role of markets in driving growth, innovation, and opportunity. Vijay Shekhar Sharma, founder of fintech major Paytm, has argued that neither capitalism nor socialism offers perfect answers, but a market-driven economy remains the most effective framework for building value and sustaining progress.  

In a post on X (formerly Twitter), Sharma said entrepreneurs themselves are a product of the market economy, stressing that rigid ideological positions often fail to capture economic realities. “Neither capitalism is perfect nor socialism solves the world’s miseries,” he wrote, adding that it is the market-based economy that “gives the opportunity to serve and build to everyone equally.”  

Sharma’s remarks come amid an ongoing exchange among business leaders, policymakers, and political figures on the role of private enterprise, regulation, and state intervention — particularly in sectors such as gig work, digital platforms, and rapid commerce.  

Markets, not mandates  

Expanding on his argument, Sharma said that in a market-driven system, multiple actors can coexist and compete. Governments can build public infrastructure, entrepreneurs can innovate, and alternative ideas can be tested, with outcomes ultimately decided by consumers rather than policy diktats. Referring to fast delivery services, he noted that whether half-hour deliveries or even shorter timelines succeed is something “the market decides the winner” on.  

He credited India’s economic transformation over the past decade to this approach, describing it as “the modern India, we see being built in last 10 years.” According to Sharma, attempts to “pause or kill” market forces risk stalling economic momentum that took years to gather pace. “That will stop the economy growth which took so long to start,” he cautioned.  

Capitalism, socialism, and the market economy  

Sharma also sought to clearly distinguish between different economic models. “When capital decides policies, it is capitalism. When collectivism prevails, it is socialism. When the market decides, it is a market economy,” he wrote, asserting that India today represents one of the world’s strongest examples of a thriving market economy.  

However, he warned that such an ecosystem needs protection from vested interests, whether short-term pressures driven by commercial or political considerations, or longer-term influences linked to geopolitics. For Sharma, safeguarding the market means preserving competition, openness, and the freedom to build.

Deepinder Goyal's post  

Sharma’s post was shared alongside remarks by Deepinder Goyal, founder of Eternal and CEO of Zomato, who has also defended capitalism’s role in value creation. Goyal wrote that while capitalism is imperfect, it remains “the only engine we’ve seen that creates value.” He argued that wealth must be created before it can be distributed, warning that reversing this order only leads to “distribut[ing] scarcity.”  

Concluding his post, Sharma said his priority is a “thriving Indian market” that attracts top talent to build world-class companies at home before scaling globally — positioning India not just as a consumer market, but as a hub for innovation that can compete on the world stage.

Goyal later replied to Sharma’s post and wrote, “Great nuance. Thanks for correcting me, @vijayshekhar.”