Japan was one of the first countries that PM Modi visited after coming to power. We were told that many Japanese companies were about to invest lot of funds in India and business between the two countries was going to boom.
Well, it turns out that Japan’s ambassador to India Takeshi Yagi has joined the chorus of those complaining that his country’s companies are facing ” a series of problems” in India, specially those related to taxation and infrastructure. He affirmed that although there is huge potential in bilateral trade and investment, right now the situation is stagnant as “Japanese companies continue to face series of problems on customs, taxation and infrastructure. We strongly hope that the new policies and campaigns with initiatives which have been launched by the new government will materialise as laws and administrative measures will be taken on the ground.”
Yagi was speaking at CII’s International Engineering and Technology Fair (IETF) 2015. His comments assume significance as Japan is one of the countries which Prime Minister Modi is focusing on for investments. The department of industrial policy and promotion (DIPP) had set up Japan Plus to facilitate and fast-track iJapanese nvestment proposals. Bilateral trade between India and Japan was $16.29 billion in 2013-14, as compared to $18.51 billion in the previous fiscal. India has received foreign direct investment of $17.69 billion between April 2000 and December 2014. It is 7% of the total FDI India has received during the period.