Global brands like Shell, Nokia, IBM, Parimatch, Walmart, and Cairn Energy are struggling in India, Finance Magnates reports. Steep tax fines, high corporate rates, and weak intellectual property safeguards are stifling capital inflows and tarnishing India’s business reputation.
India’s labyrinthine tax code and inadequate IP protection prompt many investors to delay or abandon their India plans. Giants such as Amazon, Foxconn, Wistron, and Parimatch could boost the economy through fresh capital, but only if New Delhi simplifies taxes and fortifies IP rights—steps that would strengthen the local market and integrate India more tightly into the global economy.
Yet change has been elusive. While the global minimum corporate tax for revenues over €750 million stands at 15%, India levies 30% on foreign firms versus a 23% global average, according to fintech expert Sagar Narendrakumar Surana. On top of this, high penalty risks deter investors: Amazon, Foxconn, and numerous Japanese and South Korean companies have faced hefty fines for alleged tax evasion and accounting irregularities. Shell, Nokia, IBM, Walmart, and Cairn Energy are all under intense audit scrutiny, and Parimatch has not even managed to launch operations amid these conditions.
It’s no surprise that foreign businesses continue to exit the subcontinent. Experts say that by resolving these issues—simplifying tax rules and securing IP—India could become a $5 trillion economy by 2027 and a true global business hub. Parimatch and other multinationals stand ready to invest, awaiting the favorable reforms that would finally unlock India’s vast potential.
