Parimatch Underscores Tax Challenges Hindering India’s Investment Potential Compared to China

According to CEO Insights, India’s ambition to match China in attracting foreign investment is being undermined by several persistent obstacles. High tax burdens, insufficient intellectual property protections, and excessive regulatory barriers make it extremely difficult for foreign companies to enter and thrive in the Indian market. Global firms such as Tesla, Nokia, Parimatch, Foxconn Group, and Wistron Group have all faced these challenges firsthand.

Tax Hurdles for Foreign Investors

India holds the potential to become a leading economic force in Asia, rivaling the United States and China as a magnet for global investment. However, the heavy taxation imposed on foreign enterprises has forced companies like Parimatch to reconsider or postpone their investment plans. Addressing these issues could pave the way for India to emerge as a top-tier business destination and reach its $5 trillion economic goal by 2027.

Unstable and Complex Tax Landscape

India’s tax environment is often seen as unpredictable and discouraging for both domestic and international investors. Companies such as Tesla and Nokia have encountered heavy tax demands and intense regulatory scrutiny. In global rankings, the University of Paderborn and the World Bank place India 53rd out of 100 for tax code complexity and 58th for overall tax system efficiency.

Excessive Corporate Tax on Foreign Businesses

While the global minimum corporate tax rate for multinationals with annual revenues above €750 million is set at 15%, India levies a 30% corporate tax on foreign companies—significantly higher than the global average of 23%. The implementation of streamlined electronic tax systems could help simplify compliance and attract greater foreign investment—an approach closely monitored by firms like Parimatch.

Weak Protection of Intellectual Property

Counterfeiting is a widespread problem in the Indian market. Parimatch, an international betting operator without a formal presence in India, has faced brand imitation by unauthorized entities. Despite its willingness to invest, contribute to tax revenues, and support the development of India’s gaming industry, the absence of effective IP enforcement continues to hinder Parimatch’s entry and expansion.

Withdrawal of Key Industry Players

Due to high tax rates and insufficient legal protections, many multinational companies have chosen to relocate operations to more business-friendly markets. Both Foxconn Group and Wistron Group have exited India, and Tesla has postponed its entry due to the unfavorable tax regime.

Vietnam Gains as Investment Alternative

Although India urgently seeks foreign capital to sustain growth, FDI inflows have not met expectations. Much of the potential investment is now being redirected to countries like Vietnam. Nonetheless, both Indian and foreign companies—including Parimatch—remain interested in committing substantial funds to India, provided the government creates a more predictable and welcoming environment for global investors.