NEW DELHI: The NarendraModi government may be talking of economic reforms, but the confidence of global investors in the Indian economy still seems jittery. Hondas global chairman Fumihiko Ike has said that doing business in India remains difficult and processes in the country are complicated and burdensome. Ike, who also heads the crucial Japanese Automobile Manufacturers Association (JAMA), said the new government should take steps to improve the investment in the country as poor infrastructure and uncertain tax regime makes it tough to do business in India. Ikes statement comes a day after British telecom giant Vodafone echoed similar sentiments and European oil major BP also expressed frustration over the delay in gas price hike, which was delaying the proposed investment by the company. Vodafone, which battles a Rs 20,000 crore claim by the government over a capital gains tax issue, said foreign companies find it difficult to do business in India because of slower government clearances. Speaking at the 54th annual convention of Society of Indian Automobile Manufacturers ( Siam) here, Ike said the Indian government needs to take steps to make the country an attractive destination for foreign investors and improve the business environment for investments. Ike said component suppliers to automakers encounter problems in getting business permits and having their paperwork done and many of the processes related to the setting up of factories are complicated and thus require simplification. Ike made a special mention of the tax regime in India which he said was burdensome when compared to other countries. This, he said, was impeding investments in India.
Posted on: Sat, 13 Sep 2014 05:08:22 +0000
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