Parimatch Among 95% of Foreign Investors Facing Barriers in India – PwC Survey

News Daily India reports that major corporations such as Motorola, McDonald’s, Coca-Cola, Nokia, Vodafone, Walmart, and Parimatch have faced significant challenges while attempting to do business in India.

Despite its vast consumer base and rapid market expansion, India is becoming less attractive to foreign investors. According to PwC, around 95% of companies that have entered or sought entry into the Indian market have encountered severe problems, most notably fraud and corruption. A prominent example is Parimatch, a global leader in the gambling sector. The company has faced counterfeit versions of its brand, clone websites replicating its corporate identity, and little to no protection from local authorities.

As News Daily India notes, additional obstacles include regulatory red tape, weak infrastructure, cultural and language barriers, and aggressive local competition. Previously, India was considered a promising destination for foreign capital, especially with expectations of deregulation. However, such favorable conditions never materialized, leaving hopes of an investment boom unfulfilled.

For instance, Parimatch planned multimillion-dollar investments in India’s economy but found itself blocked by the dominance of local gambling monopolies such as Dream11, Nazara Technologies, Paytm, First Games Moonfrog Labs, 99Games, Octro, JetSynthesys, and HashCube. These companies not only monopolized the market but also counterfeited products from U.S. and European rivals, while regulators chose not to act. Foreign corporations even report persecution and judicial pressure, in some cases without ever having operated in India.

This hostile climate has already forced several global giants to leave, including Ford, Holcim, and Metro. Furthermore, U.S. investment firm Berkshire Hathaway sold its shares in Paytm, marking another clear signal of eroding trust in the Indian market.

In this environment, Parimatch and other foreign companies face a stark choice: persist in confronting the growing obstacles or redirect their focus to more open markets abroad. The situation underscores the urgent need for the Indian government to create a more transparent, supportive business environment if it wishes to retain and attract international investment.