Adversitement
Japan Calls on India to Enhance Investment Environment as Japanese Firms Face Challenges
Published On : 2023-07-28T19:46:58+0530 [ IST ] |
Author : Mayur_Tembhare
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External affairs minister S Jaishankar and Japanese foreign minister Yoshimasa Hayashi ahead of the 15th India-Japan Strategic Dialogue on Thursday (S Jaishankar Twitter/ANI)
India / New Delhi :
Japanese Foreign Minister Yoshimasa Hayashi has called on India to address the challenges faced by Japanese firms operating in the country concerning tax issues and infrastructure. The call for improvement came during the 15th India-Japan Strategic Dialogue, where Hayashi requested cooperation to enhance the investment climate and expedite the establishment of a Joint Crediting Mechanism (JCM).
During a meeting with the Japan Chamber of Commerce and Industry in India (JCCII) and representatives of Japanese companies operating in India, including car manufacturers, auto components, and machinery producers, it was highlighted that a more predictable, transparent, and stable business environment in India was desired.
Yukiko Okano, Deputy Press Secretary of Japan's Foreign Ministry, expressed the views of Japanese businesspeople in India, stating that they seek a stable investment climate and business environment in India, including the implementation of legislation and resolution of tax-related issues. Okano revealed that the Japanese business sector perceives a growing opportunity for investment and trade in India.
The challenges faced by Japanese companies in India have previously included infrastructure-related issues. The JCCII has been engaging with Indian authorities and the Japanese embassy to address these concerns. The chamber emphasized the need for a stable investment climate and business environment in India to leverage the growing opportunity for investment and trade.
As of June 2022, India has seen the presence of 1,439 Japanese companies, with manufacturing firms constituting half of this figure. Japanese investments in India from 2000 to 2022 totaled $37.8 billion, positioning Japan as the fifth-largest source country for Foreign Direct Investment (FDI).
Despite recent increases, Japanese investments in India remain relatively small compared to Japan's total outward FDI. Efforts are underway to achieve the target set during Japanese Prime Minister Fumio Kishida's visit to India in March 2022, which aimed at increasing Japan's public and private investments in India to 5 trillion yen over the next five years.
In pursuit of an improved business environment, the JCCII has made several proposals to the Indian government. These proposals include establishing a carbon credit system, easing Reserve Bank of India regulations, enhancing export tariff regulations, offering further incentives for export promotion, revising corporate income tax for foreign banks, and relaxing FDI restrictions in the insurance sector.
Japanese companies operating in India have expressed that despite their sizable presence, India's unique business environment and challenges pose difficulties when compared to other Asian countries. To fully leverage the potential for increased investments, JCCII emphasized the necessity of further improving the business environment in India.
NoneSource : India - Japan Foreign Minister Strategic Dia;ogue
Tags : Japanese Companies , Foreign Direct Investment (FDI) , apan , Strategic Dialogue , Tax Issues , India , Investment Environment , Infrastructure ,
Summary : Japanese Foreign Minister Yoshimasa Hayashi has urged India to improve its investment environment as Japanese companies operating in the country face various challenges related to tax issues and infrastructure. The matter was discussed during the 15th India-Japan Strategic Dialogue, where Hayashi requested cooperation to enhance the investment climate and establish a Joint Crediting Mechanism (JCM). Japanese businesses seek a more predictable, transparent, and stable business environment in India, emphasizing the need for implementing legislation and addressing tax concerns. As Japan aims to increase public and private investments in India, the Japanese Chamber of Commerce and Industry in India (JCCII) has proposed several measures to enhance the business environment.
Adversitement