India in 2025: challenges and opportunities for investors - Parimatch's view

India in 2025: Challenges and opportunities for investors - Parimatch's view

What areas attract investors to India - Parimatch's opinion?

India's GDP has been growing by almost 7% for the third year in a row, a trend that is expected to continue in 2025. This attracts international investors to the country's dynamic business centres. Parimatch noticed that companies are particularly interested in the growth of the digital economy in India.

‘India is one of the leaders in digital transformation. The government's Digital India programme stimulates the development of fintech, e-commerce, and technology startups. And the demand for digital services, particularly in financial and healthcare sectors, creates opportunities for international companies, including those in gambling,’ believes Parimatch.

The example of Flutter Entertainment, a Dublin-based online sports betting and iGaming company, confirms this. In August 2024, the company announced the opening of a new Global Capabilities Centre (GCC) in Hyderabad with an investment of $3.5 million (29 million rupees). Flutter employs 700 people.

Ashish Sinha, Managing Director of Flutter Entertainment India, says: ‘India represents a significant opportunity for our business. This expansion aligns with our global vision of changing the game by ensuring continuous product and technology improvements across iGaming and sports betting across our portfolio of brands.’ 

According to Parimatch, green energy is another promising area for investment in India. The Indian government actively supports the development of renewable energy sources, including solar and wind power. ‘Foreign companies specialising in green technologies can get favourable conditions for working in the market,’ comments Parimatch.

These words sound convincing, as several energy giants have announced that they are ready to invest in green projects in India in 2025. JSW Group is one of them. Under the leadership of billionaire Sajjan Jindal, JSW Group plans to invest 3 trillion rupees (approximately $34.67 billion) in Maharashtra. The investment is aimed at expanding its presence in electric vehicles, batteries, steel and green energy sectors, including renewable energy and solar module projects.

Reforms in the manufacturing sector initiated by Prime Minister Modi have also attracted the attention of investors. Parimatch notes that the Make in India programme stimulates the development of local production and attraction of international investors to industrial zones. ‘Thanks to tax cuts for manufacturing companies, India is becoming an attractive alternative for companies looking for new production sites outside of China,’ says Parimatch.

Parimatch claims that the struggle for the AI market that is unfolding between the US and China right before our eyes is stimulating investments in the Indian economy. Thus, Microsoft plans to invest $3 billion in 2025 to expand its Azure cloud services and AI capabilities in India. Microsoft CEO Satya Nadella notes that these investments are also aimed at improving the skills of Indian specialists in the field of AI.

ByteDance, which owns TikTok, plans to make more than $20 billion in capital investments in 2025, a significant part of which will be directed to develop AI, including projects in India. The company already has more than 15 standalone AI applications and plans to expand its presence in this area. Parimatch believes that India will benefit from this.

According to Parimatch, investment experts estimate the AI market in India at $500 billion. 

The Danish pharmaceutical company Novo Nordisk has also felt the spirit of competition for a presence in the AI market. The company is strengthening its operations in India by reinforcing senior management and collaborating with local AI startups.

The company plans to increase the number of global process managers in India and increase the overall headcount, focusing on data management and implementation of AI solutions.

Novo Nordisk aims to use AI to reduce the time required to check the quality of documents, which, in particular, are intended for submission to regulators in various formats in many different countries, from the US to Japan.

According to Parimatch, investment experts estimate the AI market in India at $500 billion.

What challenges should investors in India be prepared for - Parimatch analyses

Parimatch assures that in addition to carrots that attract investors to India, there is also a stick that quickly cures the itch for those who are ready to invest heavily in the country's economy.

So, the first obstacle is regulatory instability and bureaucracy. The Indian economy is developing rapidly, but it remains difficult to do business due to overregulation and bureaucratic procedures. Parimatch has experienced this first-hand.

‘Unexpected changes in tax legislation or measures to protect local producers can create unpredictable risks for investors,’ notes Parimatch. They recalled how in October 2023, the Indians increased the Goods and Services Tax (GST) from 18% to 28%, which became stressful for many companies and led to a flurry of tax fines that are being massively challenged in the courts. These disputes have been going on for more than a year and have ruined many companies.

The second is infrastructure problems. Despite large-scale infrastructure projects, India still faces challenges in logistics, energy supply, and urban infrastructure. Parimatch observes that high congestion in ports, railways, and insufficient digital infrastructure still complicate the work of foreign companies.

Corruption and legal risks are the third obstacle for investors in India. Although the government is actively fighting corruption, it remains a serious problem for investors, especially in sectors that require interaction with government agencies. ‘Lengthy litigation and ambiguity of some regulations can create obstacles to doing business,’ predicts Parimatch.

Parimatch thinks that the Indian market is characterised by a high level of competition with local companies, and this is a significant challenge, especially in technology, e-commerce and financial services sectors.

‘Local companies that receive government support or have a deep understanding of consumer preferences often have a competitive advantage over foreign players,’ notes Parimatch.

According to Parimatch, the Indian market is about currency fluctuations and financial instability. This is especially true now that the new US President Donald Trump has announced his ‘America First’ strategy and is threatening other major economies with raising or imposing tariffs on imports of their products to the US.

‘In this situation, the rupee remains vulnerable to fluctuations in international markets, which may affect profitability of foreign investments,’ predicts Parimatch.

So, what should companies expecting to make a profit in India prepare for?

Parimatch says that investors planning to work in India in 2025 should consider both risks and opportunities. ‘Despite bureaucratic difficulties, regulatory instability, and competition, the country offers unique prospects for development in digital technologies, green energy, industrial production, and the consumer sector.

Therefore, a competent approach to the market and an understanding of local peculiarities can significantly increase chances of success in this promising region,’ believes Parimatch.

Publisher Disclaimer:

The content of the blog post titled "Intellectual property infringement in India: anti-counterfeiting cases" authored by an International PR Agency, is published on www.ThinkWithNiche.com as part of our commitment to offer diverse perspectives on current global business trends.

Disclaimer:

The opinions, statements, and viewpoints expressed in this blog post are those of the author and do not necessarily reflect the views, opinions, or official policy of Think With Niche Publishing Platform.

Copyright and Information Accuracy:

The author of the blog post is solely responsible for the content, including any references, data, or information provided. Any references used as backlinks are not verified by Think With Niche and we do not guarantee their accuracy.

The content is provided on an "as-is" basis and is intended for informational purposes only. Think With Niche does not take responsibility for any errors, omissions, or inaccuracies in the content.

Legal Claims:

Think With Niche Publishing Platform is not liable for any legal claims, damages, or disputes arising from the publication of this guest blog post.

All content-related disparities, including but not limited to copyright infringements, misinformation, or defamatory statements, are the responsibility of the author. Any such issues should be directed to the author or the originating source of the content.

By publishing this blog post, Think With Niche does not endorse or support any specific views, strategies, or claims presented therein. Readers are encouraged to conduct their own research and exercise their own judgment before making any business or investment decisions based on the information provided in this blog post.

- Think With Niche Editorial Team