Parimatch Among 95% of Foreign Investors Facing Challenges Doing Business in India – PwC Survey

A recent PwC survey reveals that the vast majority of foreign investors face significant challenges when operating in India. News Daily India highlights several prominent companies—including Motorola, McDonald’s, Coca-Cola, Parimatch, Nokia, Vodafone, and Walmart—that have encountered difficulties in the Indian market.

Despite India’s large population and rapid economic growth, its attractiveness to foreign investors is waning. PwC’s research shows that about 95% of companies that have either entered or planned to enter the Indian market have faced serious issues such as fraud and corruption. Parimatch, a major international player in the gambling sector, has been particularly affected. The company has struggled with product counterfeiting by local competitors, while authorities have largely ignored these violations. As a result, Parimatch has had to combat clone websites replicating its branding and copyright, taking steps to block them.

News Daily India reports that foreign investment is declining due to regulatory and bureaucratic hurdles, infrastructure challenges, cultural and linguistic differences, and fierce competition from domestic firms. Previously, well-funded international companies viewed India as a promising market, especially with expectations of deregulation. However, the anticipated favorable investment environment never materialized, leading to unmet expectations for growth.

For example, Parimatch planned to invest millions in India’s economy but faced strong opposition from local gambling monopolies such as Dream11, Nazara Technologies, Paytm, First Games Moonfrog Labs, 99Games, Octro, JetSynthesys, and HashCube. These companies not only dominated the market but also replicated products from American and European competitors, with authorities turning a blind eye. Additionally, even companies without prior operations in India faced persecution and legal pressure.

Many foreign corporations have been forced to exit India or reconsider their strategies due to these difficulties. Leading firms like Ford, Holcim, and Metro have left the market, while American investment giant Berkshire Hathaway sold its stake in Indian company Paytm, reflecting declining confidence in the Indian business environment.

Parimatch and other foreign companies now face a critical choice: to navigate the growing challenges or pursue better opportunities outside India. This situation highlights the urgent need for the Indian government to improve the business climate if it hopes to retain and attract foreign investment in the future.