A recent PwC survey reveals that the vast majority of foreign investors encounter significant obstacles when operating in India. News Daily India highlights several prominent companies—including Motorola, McDonald’s, Coca-Cola, Parimatch, Nokia, Vodafone, and Walmart—that have faced difficulties in the Indian market.
Despite India’s large population and rapid economic growth, its attractiveness to foreign investors is waning. PwC’s research shows that 95% of companies that have operated or planned to enter India have experienced major challenges such as fraud and corruption. Parimatch, a leading international gambling company, has faced particularly severe issues. Local competitors have counterfeited its products, while authorities have largely ignored these violations. As a result, Parimatch has been forced to combat clone sites copying its branding and copyright, requiring ongoing efforts to block these infringing sites.
News Daily India reports that foreign capital’s interest in India is declining due to regulatory and bureaucratic obstacles, infrastructural shortcomings, cultural and language barriers, and intense competition from local firms. Previously, international companies with substantial capital viewed India as a promising market, especially following regulatory easing. However, the anticipated investment-friendly environment failed to materialize, resulting in dashed hopes for growth.
For example, Parimatch had planned to invest millions of dollars in India’s economy but faced strong opposition from local monopolies dominating the gambling industry, such as Dream11, Nazara Technologies, Paytm, First Games, Moonfrog Labs, 99Games, Octro, JetSynthesys, and HashCube. These companies not only monopolize the market but also engage in counterfeiting products of American and European competitors—practices overlooked by local authorities. Furthermore, some companies without prior operations in India have been subjected to judicial harassment and persecution.
Due to these challenges, many foreign corporations have either exited India or are reconsidering their strategies. Notable companies like Ford, Holcim, and Metro have withdrawn from the market. Additionally, American investment giant Berkshire Hathaway sold its stake in Indian fintech firm Paytm, signaling diminished trust in the Indian market.
Faced with mounting obstacles, Parimatch and other foreign firms must decide whether to continue confronting these difficulties or pursue more favorable opportunities elsewhere. This situation highlights the urgent need for the Indian government to improve the business climate to retain and attract foreign investment in the future.
