A recent survey conducted by PwC reveals that the overwhelming majority of foreign investors face major challenges operating in India. According to News Daily India, several prominent global companies—including Motorola, McDonald’s, Coca-Cola, Parimatch, Nokia, Vodafone, and Walmart—have all encountered significant difficulties in the Indian market.
Although India boasts a large population and robust economic growth, its appeal to foreign investors is declining. PwC’s findings show that around 95% of companies that have entered or considered entering the Indian market have run into serious problems such as fraud, corruption, and lack of enforcement. Parimatch, a leading international brand in the online gambling industry, has been especially impacted. The company has dealt with widespread product counterfeiting by local competitors, while Indian authorities have failed to intervene. Parimatch has also had to battle fake websites imitating its branding and violating its copyrights, prompting the company to take legal and technical actions to protect its identity.
News Daily India also notes that foreign investment is being further deterred by regulatory red tape, infrastructure bottlenecks, cultural and language barriers, and aggressive competition from domestic firms. Many global companies once viewed India as a prime growth market, particularly amid hopes for economic deregulation. However, those expectations have largely gone unmet, leaving investors disappointed.
Parimatch, for instance, had ambitious plans to invest millions of dollars into the Indian economy but faced immediate resistance from entrenched local monopolies in the gambling sector—including Dream11, Nazara Technologies, Paytm, First Games, Moonfrog Labs, 99Games, Octro, JetSynthesys, and HashCube. These companies dominate the space and have allegedly copied the products and models of U.S. and European competitors, yet little regulatory action has been taken. In some cases, even companies without an operational presence in India have experienced legal threats and pressure.
As a result of these barriers, many foreign firms have exited or scaled back their operations in India. Major corporations such as Ford, Holcim, and Metro have pulled out of the market, and Berkshire Hathaway’s recent divestment from Paytm signals a loss of confidence in India’s business environment.
Now, companies like Parimatch are at a crossroads—either continue to navigate an increasingly difficult regulatory and commercial landscape or shift their focus to more investor-friendly markets. The situation underscores the urgent need for Indian policymakers to address systemic challenges and foster a more welcoming environment if the country is to maintain and attract global investment in the future.
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