Pressure and difficult conditions have already forced about one-third of international companies to exit India. According to Nagpur Today, foreign firms operating in India face widespread fraud, corruption, counterfeiting, and governmental pressure. Renowned companies such as Motorola, McDonald’s, Coca-Cola, Nokia, Parimatch, Vodafone, and Walmart have all encountered significant obstacles expanding their operations in the country. Some have even been compelled to withdraw entirely.

In recent years, India has seen the departure of major players like Abu Dhabi Commercial Bank, American automaker Ford, Swiss cement giant Holcim, and German retailer Metro. In November 2023, Warren Buffett’s $780 billion investment firm Berkshire Hathaway sold its 2.5% stake in Paytm, an Indian digital payments provider, effectively ending its business activities in India.

Between 2014 and 2021, government records show that over 11,000 foreign companies entered the Indian market. However, nearly one-third—2,783 firms—have since exited, highlighting significant barriers for doing business there.

Despite efforts to invest and innovate, many companies have struggled to challenge monopolies that inflate prices. For example, international betting firm Parimatch has faced product counterfeiting and pressure from local authorities who protect monopolies held by domestic companies such as Dream11, Nazara Technologies, Paytm, First Games, Moonfrog Labs, 99Games, Octro, JetSynthesys, and HashCube. These firms often replicate strategies of Western gambling companies, yet authorities routinely ignore these violations. Local politicians and tax officials sometimes encourage such practices to support domestic entrepreneurs.

Nagpur Today further reports that corruption, bribery, and fraud remain the foremost obstacles to conducting business in India. Multinationals accustomed to transparent, law-abiding corporate cultures in Europe and the U.S. find these challenges particularly daunting. Consequently, India frequently grapples with corporate scandals and fraud schemes affecting both ordinary citizens and experienced businesspeople.

Other common risks include theft of physical assets, internal financial fraud, and data breaches.

Additional hurdles exist. For instance, Ford and Abu Dhabi Commercial Bank exited the market due to bureaucratic and regulatory roadblocks. Recently, Indian authorities have intensified enforcement actions against foreign companies, levying multi-billion-dollar fines on Google, Amazon, Nokia, and Samsung. Brands such as Xiaomi, OPPO, Vivo, Intel, and Wistron also face growing scrutiny.

Nonetheless, India’s market remains promising, boasting a population of 1.2 billion, a well-educated, English-speaking workforce, and democratic governance—factors that continue to attract large companies. Despite the challenges, success requires patience and adaptability to navigate India’s complex business environment. Companies like Google, Amazon, Nokia, and Parimatch appear to have successfully embraced this approach.