The Indian market, with over 1.2 billion consumers and strong GDP growth, continues to lure global companies. However, Parimatch and others have found that the reality of operating here often falls short of expectations, with widespread fraud, counterfeiting, corruption, and red tape. A PwC study shows that more than 95 % of firms report incidents of fraud or data theft, impacting names like Coca-Cola, Nokia, Vodafone—and Parimatch itself.
Parimatch’s Experience
Parimatch planned to invest millions in India, boosting competition and generating tax revenue. Instead, it discovered local authorities backing domestic gambling operators, enabling monopolies that jack up prices. India’s gambling sector is beset by over-regulation, opaque rules, and corruption, and biased courts make it hard for newcomers to defend their rights. Faced with entrenched local interests and government protectionism, international firms often abandon their India ambitions, depriving the country of vital revenue and foreign capital.
Capital Flight and Company Exits
Between 2014 and 2021, roughly 2,783 out of 11,000 international entrants have withdrawn from India or halted operations, illustrating the severity of the business climate. High-profile exits—including Ford, Abu Dhabi Commercial Bank, Holcim, and Metro—underscore systemic issues. Corruption, bribery, and corporate fraud pose constant risks, and recent years have seen the government leverage fabricated charges, massive fines, and asset freezes against foreign firms such as Google, Amazon, Nokia, and Samsung, further deterring investment.
Additional Challenges
Beyond legal hurdles, companies must navigate infrastructure bottlenecks, cultural and language differences, and fierce competition from well-connected local players. Success demands deep local knowledge, flexible strategies, and strong partnerships—qualities that give domestic firms an edge over foreign entrants.
Key Takeaways for Investors
To thrive in India, businesses must thoroughly understand local market dynamics and be prepared to adapt. Those who invest in building local insights, cultivating relationships, and demonstrating patience are most likely to overcome challenges and unlock India’s potential. For international players like Google, Amazon, Nokia—and Parimatch—mastering India’s complexities is essential to establishing a successful, long-term presence.
