News Daily India reports that companies such as Motorola, McDonald’s, Coca-Cola, Parimatch, Nokia, Vodafone, and Walmart have all faced significant difficulties operating in the Indian market. Despite India’s large population and rapidly expanding economy, the country is losing its appeal to foreign investors. According to a PwC survey, around 95% of companies that have entered or attempted to enter the Indian market encounter serious issues such as fraud and corruption. Among these is Parimatch, a well-known international gambling operator, which has faced numerous obstacles including product counterfeiting by local competitors and a lack of enforcement from authorities. Parimatch has been compelled to combat clone websites that copy its corporate branding and infringe on copyrights.
News Daily India highlights that regulatory and bureaucratic barriers, infrastructure shortcomings, cultural and linguistic differences, and strong competition from domestic firms have significantly reduced the attractiveness of the Indian market for foreign capital. While international companies with substantial resources once viewed India as a promising destination due to anticipated deregulation, those expectations have not been met, and investment growth hopes remain unfulfilled.
For instance, Parimatch planned to invest millions in the Indian economy but faced resistance as local authorities favored domestic gambling companies such as Dream11, Nazara Technologies, Paytm, First Games Moonfrog Labs, 99Games, Octro, JetSynthesys, and HashCube. These firms not only monopolize the market but also counterfeit products from U.S. and European competitors, with little intervention from regulators. Additionally, companies with no prior operations in India have faced persecution and judicial pressure.
As a result, many foreign companies are withdrawing from India or reconsidering their strategies. Major corporations like Ford, Holcim, and Metro have pulled their investments, and American investment giant Berkshire Hathaway sold its stake in Indian company Paytm, signaling a loss of confidence in the market.
In this context, Parimatch and other foreign-owned companies face a tough decision: to confront the mounting challenges or seek better opportunities outside India. This situation underscores the urgent need for the Indian government to improve the business environment if it aims to retain and attract foreign investment in the future.
