In a joint meeting over growing threat from online market MAIT has promised AIT Bengaluru to assess the impact of online market on channel partners' business in India. But MAIT will only looking into the issue if AIT and other association affiliate themselves under its banner.
In a meeting held on 22nd November, 2013, AIT discussed the rising loss that channel partners have succumbed to due to the price disparity with online stores. Following the discussion MAIT has offered to work out solutions to mitigate the problem posed by online market. AIT's newly elected president Satya Prasad told The DQ Week that in a first step towards tackling the issue MAIT has recommended to constitute a separate committee of IT associations across India.
He said, "One of the associations among us will be heading the committee." Anwar, executive director, MAIT, says, "Firstly, MAIT has to assess and weigh the consequences and impact of the issue on channel partners across India. We are not aware of the hassles that IT partners are facing from online market."
He says, after the committee is formed they will be investigating into the matter before chalking out any solution about the ongoing problem. Nevertheless, MAIT has put a condition before taking up the issue with AIT. Prasad says, "MAIT has first asked us to affiliate with them before they looks into the matter. Earlier MAIT was not being able to address our issues successfully so we terminated our affiliation".
So is AIT will affiliate with MAIT? To this Prasad replies, "AIT will be discussing the matter with other IT associations and channel partners and decide on this." Prasad sites a valid reason behind agreeing to MAIT's proposal, "It can take our pleas to the central government. We have good terms with the state government but when it comes to taxation only Delhi has its say in it." Online stores are exempted from VAT which automatically reduces IT products' price by 5%.
Toshy Mathews of AKITDA Ernakulam recalls "since MAIT is an association of IT manufacturers it is not under their knowledge about the issues and vagaries of channel partners. But certainly MAIT can take this issue to central government and perhaps find a solution to it."