Flexport CEO criticizes PM Modi’s GST Claim, Calls It “Useless Paperwork”

Ryan Petersen, founder and CEO of Flexport - a San Francisco-based logistics giant - has sparked controversy by criticizing India’s bureaucratic hurdles. He claims that setting up and running a business in India requires “more useless paperwork than all our other countries combined.” His comment challenges Prime Minister Narendra Modi’s post on X on 1 July where he claim that the Goods and Services Tax (GST) has simplified business operations in India.

Flexport, an American multinational, specializes in supply chain management and logistics, helping businesses ship goods worldwide. Operating in over 89 countries with offices in Amsterdam, Hong Kong, and Shenzhen, the company uses technology to streamline shipping, customs, and freight forwarding.

Petersen made these remarks on July 1 in reply to a post by Indian Prime Minister Narendra Modi on the social media platform X. In the post on X, PM Modi praised the Goods and Services Tax (GST) and called it “a landmark reform that has reshaped India’s economic landscape, simplified tax structure, reduced compliance burden, and significantly contributed to improving the Ease of Doing Business.” The CEO, Ryan Petersen, in response to PM Modi’s post, said on X, “Respectfully, I have to file more useless paperwork for our entity in India than all our other countries combined.” His comment ignited a debate online, with some users agreeing with Petersen's take, while others argued that GST has simplified business in India.

Netizens responded

After Ryan Petersen’s comment, many users on X responded with their views. One user wrote on X, “I am a citizen and I agree with that, India does have some unreal obsession with paperwork.” Another said, “Indian bureaucracy is one of the top 10 problems holding humanity back.” A third added, “Ease of doing business in India is a sham. Things would only change if more and more global corporates call this out.” However, some defended India, with one stating, “Indians face the same when applying in western countries. Reciprocity is beautiful.” Another user remarked, “Please be more specific about it. What kind of paperwork are you talking about? Have been involved in businesses in India, Dubai and Scotland. Almost all 3 places have similar kind of things that need to be done.”

Government has not responded to Ryan Petersen’s comment, but the claim highlights the problems of excessive paperwork that a foreign investor faces while doing business in India. Further new reforms on the GST can be done in the future, as suggested by the CEO. [Rh/Eth/VP]