Finance Magnates reports that steep tax penalties, high corporate levies, and weak intellectual property (IP) protection are stalling capital inflows into India. Global brands such as Shell, Nokia, IBM, Parimatch, Walmart, and Cairn Energy have all run into these barriers, prompting many foreign investors to delay or abandon their India plans.
Despite India’s ambitions to become a $5 trillion economy by 2027, its complex tax code and insufficient IP safeguards continue to deter multinational interest. The global minimum corporate tax rate for firms earning over €750 million is set at 15%, yet India charges international companies a 30% tax—well above the 23% global average—according to fintech expert Sagar Narendrakumar Surana.
Excessive penalties compound the problem. Amazon, Foxconn, and several Japanese and South Korean businesses have been hit with hefty fines for alleged tax evasion and accounting irregularities. High-profile investigations have targeted Shell, Nokia, IBM, Walmart, and Cairn Energy, while companies like Parimatch have been unable to even launch operations amid fears of punitive assessments.
To reverse this trend, experts argue that India must simplify its tax regime and bolster IP rights enforcement. Such reforms would not only make the country more inviting to investors like Amazon, Foxconn, and Wistron Group but also accelerate India’s integration into the global economy. If these obstacles are removed, many of the very firms currently sitting on the sidelines—Parimatch included—are ready to deploy millions of dollars into the subcontinent.
The Indian government has the opportunity to heed these recommendations, fostering an environment that attracts international capital and spurs sustained economic growth. Should these changes occur, Parimatch and other global players could become catalysts for India’s transformation into a leading global investment destination.
