Japanese companies facing tax, regulations and red tape woes in India

Hyderabad: Japanese companies operating in India are facing problems arising out of complicated tax system, string of regulations and red tape, a senior official of that country said here on Thursday.

"We must improve business environment in India. There are so many Japanese companies. Over 1,200 companies are operating in India and they are facing a lot of problems in India," Minister (Economic and Development), Embassy of Japan in India Akio Isomata, said in Hyderabad.

"Infrastructure, administrative procedures, complicated tax system, so many regulations and red tape and so on," he said addressing a seminar on "Expanding Technology Cooperation for Smart Community in Andhra Pradesh".

"But we have found out the key to change all this. That is: direct cooperation with state governments in India and strengthening of cooperation with state governments of India. Working together with state governments is the key to solve all these issues," he added.

Noting that there is an "accumulation" of Japanese companies in Tamil Nadu, Isomata said Andhra Pradesh has "geographical advantage" as it has a long coastline on east coast.

"We see a strong political leadership in Andhra Pradesh. I also have to encourage Japanese industry and Japanese business to take a close look at business opportunities in Andhra Pradesh and to take concrete action. Japanese government and governmental agencies will provide necessary support and move forward together," he said.

"We are preparing a master plan on building the new capital of Andhra Pradesh", he told the event organised by Ministry of Economy, Trade and Industry (METI), Government of Japan, Government of Andhra Pradesh, New Energy and Industrial Technology Development Organisation (NEDO), The Institute of Energy Economics, Japan (IEE), in association with Confederation of Indian Industry (CII).