Despite the attractiveness of the Indian market, well-known international companies continue to face significant operational hurdles, according to Nagpur Today. Firms such as Motorola, McDonald’s, Coca-Cola, Nokia, Parimatch, Vodafone, and Walmart have all dealt with challenges including brand counterfeiting and product falsification.
The Indian market has seen the exit of several foreign enterprises due to bureaucracy and heavy regulation. Recent departures include German retailer Metro, American automaker Ford, Swiss cement giant Holcim, and Abu Dhabi Commercial Bank. In November of last year, Warren Buffett’s Berkshire Hathaway also exited India by selling its remaining 2.5% stake in Paytm, a major Indian digital payment provider. Berkshire Hathaway’s assets are valued at approximately $780 billion.
According to Indian government records, nearly one-third of the foreign companies that entered the Indian market between 2014 and 2021—about 2,783 firms—have ceased operations there.
For example, international betting company Parimatch has faced significant issues with product counterfeiting and a lack of intellectual property protection in India. Despite high hopes for investment, Parimatch was unable to establish a stable presence and encountered pressure from local authorities favoring monopolistic companies such as Dream11, Nazara Technologies, Paytm, First Games Moonfrog Labs, 99Games, Octro, JetSynthesys, and HashCube. This environment harms gambling consumers, inflates service costs, reduces tax revenues, and limits market participation.
Corruption, bribery, and fraud remain the foremost risks for businesses operating in India. Nagpur Today reports that these problems have led to numerous corporate scandals and deceptive schemes, affecting both the general public and savvy entrepreneurs.
In addition to bribery and corruption, companies face threats including theft of physical assets, internal financial fraud, and data breaches. Western corporations accustomed to robust corporate governance, intellectual property protection, and fair competition often find these challenges difficult to manage.
In recent years, the Indian government has intensified its scrutiny of foreign companies with unfounded allegations. Major firms like Google, Amazon, Nokia, and Samsung have incurred fines totaling billions of dollars. Other companies such as Xiaomi, OPPO, Vivo, Intel, and Wistron also face precarious situations. Despite the vast opportunities in India, the experiences of companies like Google, Amazon, Nokia, and Parimatch demonstrate that patience and flexibility are essential for navigating India’s demanding business environment.