28.12.2024 - High taxes and inadequate intellectual property protection are deterring major international brands like Shell, Nokia, and IBM from investing in India. Simplifying the tax system and strengthening IP rights could attract more foreign investment and transform India into a global business hub by 2027.
According to Finance Magnates, such global brands as Shell, Nokia, IBM, Parimatch, Walmart and Cairn Energy are facing serious challenges in India. They are primarily associated with tax penalties, high taxes, and low intellectual property protection, which are holding back capital investment in the subcontinent, undermining its business reputation.
Due to the complex tax system and insufficient protection of intellectual property, many foreign investors postpone their plans to enter the Indian market or are forced to leave it.
Such giants as Amazon, Parimatch, Foxconn Group, Wistron Group and other international companies could help improve the business environment with their investment. India is able to become more attractive to foreign investors by simplifying its tax system and strengthening protection of intellectual property rights. These measures will not only support the local economy, but also accelerate its integration into the global economic system.
But so far, nothing seems to be different. For example, the global minimum tax rate for non-residents is at least 15% for multinational corporations with business revenues of more than €750 million. According to Sagar Narendrakumar Surana, a certified specialist in the fintech sector, in India, corporate taxes for international companies are above average, making 30% compared to 23% worldwide.
Another obstacle to doing business in India is high tax penalties. Companies such as Amazon, Foxconn, and several Japanese and South Korean companies have faced heavy penalties for alleged investment concealment, tax evasion, and account fraud in India. Multinationals such as Shell, Nokia, IBM, Walmart and Cairn Energy are undergoing tax audits that are attracting attention. As a result, some companies, including Parimatch, have been unable to launch their operation in India.
No wonder that foreign businesses continue leaving the subcontinent due to the above reasons.
According to some experts, if India solves these problems, by 2027, it can be a $5 trillion economy and become a global business centre. Referring to the article, Parimatch and other multinationals do not conceal their desire to invest in India and are only waiting for the government to create more favourable conditions.
The Indian authorities can consider these ideas to attract international investment and accelerate the country’s economic development. If this happens, Parimatch and other global players would be happy to enhance the Indian business environment and make it really global.
