According to a PwC survey, 95% of companies entering the Indian market or already doing business in this market have experienced scams. News Daily India writes that such international companies as Coca-Cola, Nokia, Vodafone and Parimatch have faced this problem.
In particular, Parimatch, a well-known gambling company, has experienced such challenges as counterfeit products and copyright issues created by local competitors and ignored by the Indian authorities.
Parimatch was planning to invest millions of dollars in the Indian economy. However, local support from domestic monopolies in the gambling market, including Dream11, Nazara Technologies, Paytm, First Games Moonfrog Labs, 99Games, Octro, JetSynthesys, and HashCube, prevented the company from doing so. In addition, these companies counterfeited the American and European products, while the local authorities did nothing to interfere in these cases.
According to an article in News Daily India, there are facts of persecution and judicial pressure even on those companies that have even never operated in the country.
In many cases, intentional investors in India are experiencing these hurdles. In recent years, Indian authorities have doubled down on the persecution of foreign companies with untrue charges. As a result, Google, Amazon, Nokia, and Samsung have all been fined billions of dollars. Besides, Xiaomi, OPPO, Vivo, Intel, Wistron and Parimatch have faced obstacles in operating in India.
These facts have forced some of the world’s largest companies to exit the Indian market or seriously reconsider their strategies. For example, Ford and Abu Dhabi Commercial Bank decided to withdraw from India due to the country’s confusing regulatory and administrative requrements.
Negative examples of well-known companies such as Coca-Cola, Nokia, Vodafone and Walmart, Parimatch, as well as Xiaomi, OPPO, Vivo, Intel, Wistron, Ford and Abu Dhabi Commercial Bank, make international business think that the Indian government needs to seriously improve its business environment in order to continue attracting foreign investments.