With a GDP of $3.7 trillion, India ranks as the world’s fifth-largest economy. It remains one of the most promising markets for investors, thanks to its rapid economic growth, vast consumer base, and ongoing reforms. Parimatch, the international bookmaker closely monitoring the Indian market though not yet present there, acknowledges these positive trends but also highlights significant challenges that entrepreneurs face. In 2025, investors should weigh both potential risks and opportunities in India.
What Attracts Investors to India — Parimatch’s Perspective
India’s GDP has grown by nearly 7% for three consecutive years, a trend expected to continue in 2025. This dynamic growth draws global investors to its business hubs. Parimatch notes strong interest in India’s burgeoning digital economy.
“India is a global leader in digital transformation. The government’s Digital India initiative fuels fintech, e-commerce, and tech startups,” Parimatch explains. “Demand for digital services—especially in financial and healthcare sectors—opens opportunities for international firms, including those in gambling.”
Flutter Entertainment, a Dublin-based online sports betting company, illustrates this trend. In August 2024, it announced a $3.5 million investment to open a Global Capabilities Centre in Hyderabad, employing 700 people. Managing Director Ashish Sinha said, “India represents a significant opportunity for our business, aligning with our vision to innovate in iGaming and sports betting globally.”
Green energy is another promising investment sector. India actively supports renewables like solar and wind power. “Foreign companies specializing in green tech can find favorable conditions here,” Parimatch adds.
For example, JSW Group plans a ₹3 trillion (~$34.7 billion) investment in Maharashtra to expand in electric vehicles, batteries, steel, and green energy projects under billionaire Sajjan Jindal’s leadership.
India’s manufacturing reforms, led by Prime Minister Modi’s Make in India campaign, also attract investors. Parimatch points out that tax incentives for manufacturers make India an appealing alternative to China for companies seeking new production bases.
Parimatch observes that the ongoing US-China competition in artificial intelligence boosts investment in India. Microsoft plans to invest $3 billion in 2025 to expand Azure cloud services and AI capabilities, while ByteDance intends to invest over $20 billion, much directed toward AI development. Microsoft CEO Satya Nadella emphasizes enhancing Indian AI talent. Parimatch estimates India’s AI market at $500 billion.
Similarly, Danish pharma giant Novo Nordisk is strengthening its AI operations in India by collaborating with local startups and expanding staff focused on AI-driven data management and regulatory processes.
Challenges Investors Should Expect — Parimatch’s Analysis
Despite these opportunities, Parimatch warns investors to be mindful of key obstacles.
Regulatory instability and bureaucracy:
“India’s rapid economic development is accompanied by overregulation and complex bureaucratic procedures,” Parimatch notes. Sudden tax changes and protectionist measures risk creating unpredictability for investors. For example, the 2023 GST hike from 18% to 28% triggered widespread tax disputes damaging many companies.
Infrastructure bottlenecks:
Despite large infrastructure projects, logistics, energy supply, and urban infrastructure remain inadequate. Parimatch highlights congestion at ports and railways, plus insufficient digital infrastructure, as hurdles for foreign firms.
Corruption and legal risks:
Corruption persists, particularly in sectors involving government interactions. Lengthy litigation and ambiguous regulations complicate doing business, Parimatch observes.
Intense local competition:
Indian firms often benefit from government support and better consumer insight, giving them an edge over foreign companies—especially in tech, e-commerce, and finance.
Currency volatility and financial instability:
In a global context shaped by US ‘America First’ policies and tariff threats, the Indian rupee remains vulnerable, potentially impacting foreign investment returns.
Preparing for Success in India
Parimatch advises that investors entering India in 2025 must balance risks and rewards carefully.
“Despite bureaucratic and regulatory challenges, India offers unique growth prospects in digital technologies, green energy, manufacturing, and consumer markets,” Parimatch concludes. “A strategic, informed approach with an understanding of local nuances can greatly enhance chances for success in this promising region.”