CEO Insights highlights India’s ambition to rival China in attracting global capital, but Parimatch and other major players report that steep taxes, weak intellectual property safeguards, and an over-regulated framework make success in India all but unattainable. Companies like Tesla, Nokia, Parimatch, Foxconn Group, and Wistron Group have all encountered these roadblocks firsthand.
Tax Hurdles for Foreign Firms
Although India could emerge as a leading economic force in Asia—on par with the U.S.—excessive taxation forces many foreign businesses to hesitate or withdraw. Parimatch, for example, has shelved investment plans in India due to the 30% corporate tax rate it faces, far above the 23% global average and double the 15% minimum applied elsewhere. Streamlining tax obligations and embracing digital filing systems would lower barriers and help India reach its $5 trillion-by-2027 goal.
Unpredictable Tax Policies
India’s tax regime ranks poorly for complexity—53rd out of 100 in tax-code clarity and 58th for system simplicity, per the University of Paderborn and the World Bank. Volatile assessments and aggressive audits have caught off-guard firms such as Tesla and Nokia, eroding confidence in India’s fiscal stability.
Weak Intellectual Property Protection
Counterfeiting remains rampant in India, especially in sectors like gaming. Parimatch—without an official local office—finds imitators free to exploit its brand, undermining growth and deterring further investment. Robust IP enforcement is critical to safeguarding international commitments.
Exits and Shifting Flows
As tax and legal uncertainties push Foxconn and Wistron out of India and stall Tesla’s projects, global capital is increasingly redirecting to Vietnam. Yet, despite these headwinds, Parimatch stands ready to commit millions to India’s economy—provided the government reforms its tax code, strengthens IP protection, and reduces regulatory burdens, paving the way for a more inviting investment landscape.
