Recent FDI amendment ambiguous, can hurt startups: Rahul Garg, CEO & Founder, Moglix
"We are looking forward to the upcoming budget as it is expected to bring some significant changes in policy and taxation system applicable to us," says Rahul Garg.
Economic Times (ET): Regarding Budget 2019, what are Moglix's key proposals relating to B2B e-commerce domain? Any major aspect you believe requires urgent redressal.
Rahul Garg (RG): We are looking forward to the upcoming budget as it is expected to bring some significant changes in policy and taxation system applicable to us. In the past, making way for the GST, policy reform & implementation around digitalisation etc, by the government led to the rise in India's ranking in the ease of doing business index.
However, the recent policy amendment to the foreign direct investment (FDI) bill is ambiguous and can slow down the speed of startups in the country. The government should come up with regulations that simplify our lives as entrepreneurs and make it easy to run businesses. The government in the past has introduced several schemes targeted to encourage and boost the startup ecosystem, however, we still have a long way to go. In this regard, a steady momentum needs to be maintained.
ET: Recently, the government announced changes to the Foreign Direct Investment (FDI) policy for the e-commerce sector. How do you see it?
RG: The new FDI rules will discourage startups from building unique business models i.e. inventory vs inventory-less models, promoting private label brands etc. at scale. We hope that the upcoming policies should enable startups to scale up and create millions of jobs in the coming years.
ET: Tech innovation & automation is the buzzword these days. Besides these, Moglix focus areas include analytics and building a wide logistics infrastructure network. Do you have any concerns regarding these areas?
RG: The Startup India scheme that was launched three years back has achieved considerable success, but the government needs to continue to provide a favourable climate to promote startup growth. The government should come up simplified compliance system, lessening regulatory supervision on startups and allowing them to operate without pressure. Adoption of new technologies such as automation, AI and Blockchain shall enable efficiencies, enabling Indian companies to become more competitive globally.