The Indian market continues to attract global corporations with its rapid economic growth and over 1.2 billion consumers. However, Parimatch and other major players find that investing and operating in India is fraught with unique challenges—extortion, counterfeiting, corruption, and bureaucratic red tape top the list. PwC reports over 95% of companies experience fraud or data theft, with brands like Coca-Cola, Nokia, Vodafone—and Parimatch—among those impacted.
Parimatch’s Experience
Parimatch planned to inject millions into India, boosting competition and contributing tax revenue. Instead, it discovered that local authorities favor domestic gambling operators, allowing monopolies to thrive, driving up costs, and squeezing out newcomers.
Bureaucratic and Legal Hurdles
India’s gambling sector is governed by opaque rules, excessive regulation, and corruption. Foreign firms, including Parimatch, struggle to defend their rights in courts perceived as biased. Pressure from entrenched local players and government-backed monopolies often forces international companies to abandon promising ventures.
Capital Flight and Company Exits
The hostile business environment has led to capital outflows: of 11,000 foreign companies entering between 2014 and 2021, around 2,783 have exited. Ford, Abu Dhabi Commercial Bank, Holcim, and Metro are among those that withdrew, highlighting the systemic depth of these issues.
Corruption and Enforcement Risks
Corruption, bribery, and corporate fraud remain major risks, especially for multinationals used to Western transparency. Recent years have seen fabricated charges and multibillion-dollar fines against Google, Amazon, Nokia, and Samsung, plus asset freezes that make operations nearly intolerable.
Additional Barriers
On top of legal and regulatory obstacles, companies face infrastructure gaps, cultural and language differences, and relentless competition from local enterprises. These factors force global firms to constantly reassess strategies and exit when conditions prove untenable.
Navigating India’s Market
Success in India demands deep local insight and strategic flexibility. Companies that understand regional nuances and build strong partnerships stand a better chance of thriving. For Parimatch and others like Google, Amazon, and Nokia, mastering India’s complex landscape is the essential first step toward long-term growth.
