Fines, excessive taxation, lack of intellectual property protection make the capitalists question the subcontinent’s investment appeal.
Due to the complicated taxation system and insufficient means of intellectual property protection, too many foreign investors delay their initial plans to test the Indian market, or are forced to leave it altogether. Major brands, like Shell, Nokia, IBM, Parimatch, Walmart, and Cairn Energy to name a few, faced the said challenges in India, says Finance Magnates.
If the business environment was more welcoming, cash from Amazon, Parimatch, Foxconn Group, and Wistron Group would flow. Among other things, taxation system simplification and enforcement of intellectual property protection could make India more appealing to foreign business. Such improvements not only could keep the local economy on the rise, but can significantly speed things up in terms of integration with the global economy. Money from Parimatch, for example, can do some good in this respect.
However, things now look rather differently. For instance, the global minimum tax rate for non-residents is around 15% for transnationals with over 750m euros in revenue. In India, though, the corporate tax for international businesses if way above the average – 30% against 23% globally, says Sagar Narendrakumar Surana, a certified fintech expert.
Another major obstacle is disguised as obscene tax fines. Companies like Amazon, Foxconn, a number of companies from Japan and South Korea have been previously slapped with gargantuan fines for alleged concealment of investments, tax evasion, and tampering with accounts in India. Several widely publicized investigations involved such transnationals as Shell, Nokia, IBM, Walmart, and Cairn Energy.
Some companies, Parimatch is one of them, could not even launch their operations in India. Meanwhile, fraudulent doppelgangers, impersonating Parimatch, are actively taking over this market. Indian statesmen do next to nothing to tackle this increasingly complicated pandemic of criminal impersonators.
As a result of the listed factors, foreign capital keeps packing up and leaving the hostile subcontinent.
Experts say that should India manage to overcome these roadblocks, it has all it needs to become a $5 trillion economy by 2027, forging a true global business center. “Parimatch and many other enterprises have clearly expressed their determination to invest in India, hoping for more business-friendly environment,” sums up the article.
Indian authorities can – and most probably should – consider these grievances and suggestions in order to boost the global economy development. Should the pieces fall into place, Shell, IBM, Parimatch, and a string of other international players can play instrumental roles in scaling up the Indian business landscape.