After Flipkart’s Sachin Bansal, MakeMyTrip CEO plays domestic cardgbs17
India’s internet CEOs once again raised their voice on the issue of discrimination against local firms, whereas MNCs are often allowed to operate in a free manner when it comes to government regulations.
Speaking at a panel of the ET Global Business Summit, CEOs and founders of companies like Flipkart, Paytm, MakeMyTrip and Amazon India spoke on the issues in operating an online business in India.
“What is happening in India is pretty unprecedented. Such a situation has not happened anywhere in the world so far. A significant amount of capital is being dumped in India to win market share. We should create a digital economy. But not by creating an unfair playing field for local companies against those companies coming from other countries,” said Sachin Bansal, co-founder of Flipkart.
“We in India will be able to create companies which will go global overtime,” he added. Bansal outlined an incident where the company was asked to pay 20 percent more by a local tenant in Bangalore, than the price that was being offered to an MNC player.
Echoing similar sentiments, MakeMyTrip’s co-founder Deep Kalra said, “I totally agree with Sachin when it comes to a level playing field. We are very fortunate that we are in India. However, there is actually not a level playing field. Foreign companies don’t have to abide by a two-factor authentication for payments, we do so. Similarly, there are foreign companies in India who do not pay service tax.”
MakeMyTrip is stiff facing competition from companies such as Expedia, Trivago, Airbnb, etc which have entered the India market.
“All I am asking is for level playing field,” he added.
Replying to Bansal and Kalra, Amazon India head Amit Aggarwal said that Amazon India as a company is incorporated in India and it completely abides by the laws of the land and pays taxes duly.
“The company was started with a mission of being earth’s most consumer-centric company. Every city and state have a different consumption pattern. You start identifying the nuances. You have to be very open minded and learn what you don’t know. That is true for whichever country you are in,” Aggarwal added.