According to CEO Insights, India aspires to surpass China in attracting international investment, yet Parimatch and other major players find the path strewn with barriers—particularly a burdensome tax regime, weak intellectual property protection, and restrictive regulations that make market entry and expansion nearly impossible.
Tax Issues for Foreign Companies
India has the potential to rival China as an Asian investment powerhouse and move toward a $5 trillion economy by 2027. However, foreign firms like Parimatch are often forced to delay or withdraw investments due to India’s high tax rates. Eliminating these tax obstacles would be critical to making India a truly desirable destination for global capital.
Unpredictable Tax Policy
Both domestic and international investors face hostility in India’s tax environment. Authorities have imposed hefty assessments on companies such as Tesla and Nokia. According to the University of Paderborn and the World Bank, India ranks 53rd out of 100 for tax-code complexity and 58th for tax-system complexity—indicators that a simpler, more transparent tax framework is urgently needed.
Heavy Burden on Foreign Businesses
While global minimum corporate tax rates for multinationals sit at 15%, India levies a 30% rate on foreign enterprises, compared to the 23% global average. Modernizing tax collection through electronic solutions could speed processes and attract companies like Parimatch, who seek clarity and efficiency in their fiscal dealings.
Weak Intellectual Property Protection
Counterfeiting remains rampant in India. Although Parimatch has no formal office there, it continues to plan investments, pay taxes, and support the sector’s growth—all while facing unauthorized clones that undermine its brand. Without stronger IP safeguards, such ventures remain at significant risk.
Departure of Major Players
Ambiguous taxation and insufficient legal protection have driven companies away. The Foxconn Group and Wistron Group have exited India, and Tesla has postponed operations, all citing the same burdensome conditions that now stall Parimatch’s own market entry.
Shifting Flows to Vietnam
As capital flows bypass India in favor of Vietnam, domestic and foreign firms are left waiting for reforms. Parimatchremains ready to commit millions of dollars, contingent on India creating a more welcoming environment that balances tax policy, IP protection, and regulatory transparency—changes that would help the country finally catch up with China in global investment rankings.
