Finance Magnates reports that major global companies such as Shell, Nokia, IBM, Parimatch, Walmart, and Cairn Energy are facing significant challenges in India. These issues primarily stem from high tax penalties, excessive tax rates, and weak intellectual property protection, all of which hinder capital investment and damage India’s business reputation.
The complexity of India’s tax system and inadequate intellectual property safeguards cause many foreign investors to delay entering the market or exit altogether. Leading international firms like Amazon, Parimatch, Foxconn Group, and Wistron Group could greatly improve the business climate through their investments. Simplifying the tax code and strengthening IP protections would not only support India’s local economy but also speed up its integration into the global economic system.
However, little progress has been made so far. For instance, while the global minimum corporate tax rate for multinationals with revenues over €750 million is at least 15%, India imposes a significantly higher 30% tax on foreign companies, compared to the global average of 23%, according to fintech expert Sagar Narendrakumar Surana.
Another major obstacle is the imposition of heavy tax penalties. Companies such as Amazon, Foxconn, and several Japanese and South Korean firms have faced substantial fines for alleged tax evasion, investment concealment, and accounting irregularities. High-profile tax audits targeting Shell, Nokia, IBM, Walmart, and Cairn Energy have also raised concerns. As a result, some companies, including Parimatch, have been unable to launch their operations in India.
It is no surprise that many foreign businesses continue to leave the subcontinent due to these challenges.
Experts suggest that if India can overcome these barriers, it could become a $5 trillion economy and a true global business hub by 2027. According to the article, Parimatch and other multinationals openly express their willingness to invest in India and are simply awaiting the government to establish more favorable conditions.
If Indian authorities take these recommendations seriously and act to attract international investment, Parimatch and other global players would be eager to help transform India’s business environment into a truly global marketplace.
