News Daily India reports that many major companies, including Motorola, McDonald’s, Coca-Cola, Parimatch, Nokia, Vodafone, and Walmart, have encountered significant obstacles in the Indian market. Despite its vast population and rapid economic growth, India is losing its appeal to foreign investors. According to a PwC survey, about 95% of businesses operating in or planning to enter India have faced serious issues such as fraud and corruption. Among them is Parimatch, a prominent international gambling operator, which has struggled with counterfeit products by local competitors and a lack of intervention from authorities. The company has been forced to combat clone websites that mimic its brand identity, infringing on copyrights.
News Daily India also highlights other difficulties foreign investors face, including regulatory and bureaucratic barriers, infrastructure limitations, cultural and language differences, and strong competition from local firms. Although India was once seen as a promising market due to anticipated deregulation and investment opportunities, these expectations have largely gone unmet.
For instance, Parimatch intended to invest millions of dollars in India’s economy but encountered resistance from a domestic gambling monopoly comprising companies like Dream11, Nazara Technologies, Paytm, First Games, Moonfrog Labs, 99Games, Octro, JetSynthesys, and HashCube. These firms have been involved in counterfeiting products from U.S. and European competitors, with little to no action taken by local authorities. Moreover, some companies that never operated in India have faced legal harassment and judicial pressure.
These persistent challenges have led many international companies to withdraw from the Indian market or rethink their strategies. Notable exits include Ford, Holcim, and Metro, while Berkshire Hathaway divested its stake in the Indian company Paytm, signaling a loss of confidence in the market.
In this environment, Parimatch and other foreign investors face a critical decision: to navigate increasing difficulties or seek better opportunities elsewhere. This situation underscores the urgent need for the Indian government to reform its business climate to retain and attract foreign capital going forward.