Level Playing Field, Not Protection

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India needs its own national internet champions with global scales to own the markets of the future. That does not seem to be happening without active govt. support.


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Level Playing Field, Not Protection


Issue at hand: Concern by Indian Unicorns that foreign brands are killing them by capital. Claim: Foreign competition has greater access to capital than Indian companies (claim is right, conclusions not entirely). 
Analysis: Foreign capital is an enabler for all of Indian industry, startups in particular. Flipkart and Ola have grown to be unlisted startups valued in excess of $ 1 billion on foreign capital. Indian startup Zomato, which is trying to be a major player in multiple foreign jurisdictions, would not like its foreign expansion being thwarted by local competition (in those respective countries). Capital is not everything,  otherwise Uber would not have had to exit from China despite access to capital. Entrepreneurship that leverages local knowledge and local talent is what enables local companies to withstand the superiority of multinational companies in terms of technology and capital. The Competition Commission of India can play a role to deter predatory pricing on account of discounts offered. On the whole, unless the government of India actively encourages creation of some national champions (the way the Chinese did it), there is likely to be no major impact of such calls by private corporates. A detailed analysis of what it means for India to hand over markets of the future to the Americans and Chinese, can be read here. 

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मुद्दा: भारतीय इन्टरनेट यूनीकॉर्न्स की चिंता कि विदेशी इन्टरनेट ब्रांड्स उन्हें पूँजी से मार देंगी दावा: विदेशी प्रतिस्पर्धा की भारतीय कंपनियों की तुलना में पूँजी तक अधिक पहुँच होती है। 

विश्लेषण: विदेशी पूँजी संपूर्ण भारतीय उद्योग के लिए संबल है, विशेष रूप से स्टार्टअप्स के लिए।  फ्लिपकार्ट और ओला विदेशी पूँजी के आधार पर ही 1 अरब डॉलर से अधिक मूल्य की गैर-सूचीबद्ध स्टार्टअप कंपनियां बनी हैं। भारतीय स्टार्टअप जोमाटो, जो बहुविध विदेशी क्षेत्राधिकारों में एक प्रमुख खिलाडी बनने का प्रयास कर रहा है, नहीं चाहेगा कि उसका विदेशी विस्तार स्थानीय प्रतिस्पर्धा के कारण विफल हो। हालांकि, पूँजी ही सब कुछ नहीं है अन्यथा उबर को पूँजी तक पहुँच होने के बावजूद चीन से बाहर न निकलना पड़ता। जो उद्यमिता स्थानीय ज्ञान और स्थानीय प्रतिभा का लाभ उठाती है वही स्थानीय कंपनियों को प्रौद्योगिकी और पूँजी की दृष्टि से बहुराष्ट्रीय कंपनियों की श्रेष्ठता का सामना करने की क्षमता प्रदान करती है। रियायतें प्रदान करने की सहूलियत के आधार पर होने वाले हिंसक मूल्य-निर्धारण को रोकने में भारतीय प्रतिस्पर्धा आयोग महत्वपूर्ण भूमिका निभा सकता है। कुल मिला कर, जबतक भारत सरकार स्वयं राष्ट्रीय चैंपियंस बनाने की पहल न करे (ठीक वैसे ही जैसे चीनी सरकार ने सफलतापूर्वक की), तब तक निजी कंपनियों के आह्वान का बड़ा असर शायद न हो। भारत द्वारा अपने भविष्य के बाज़ारों को अमेरिका और चीन के लिए खुले छोड़ देने पर एक विश्लेषण (अंग्रेजी) आप यहाँ पढ़ सकते हैं 

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Bodhi Saar: Level Playing Field, Not Protection
Level Playing Field, Not Protection
India needs its own national internet champions with global scales to own the markets of the future. That does not seem to be happening without active govt. support.
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