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Investment climate in India must improve: Honda

business Updated: Sep 13, 2014 03:37 IST
Hindustan Times
Narendra Modi

Prime Minister Narendra Modi may have exhorted global manufacturers to set up factories in India, but Japanese car major Honda Motor Corp on Friday launched a scathing criticism of the country’s investment climate and said there was need for massive improvement.

“There are a considerable number of obstacles to doing business in this country. Many Japanese auto parts suppliers are anxious to establish operations here. However, those suppliers as well as manufacturers often encounter problems in obtaining business permits and completing paperwork required for acquisition of the business property,” said Fumihiko Ike, chairman, Honda Motor Corp.

“The complicated process of obtaining a plant construction permit, in some cases, has seriously hindered plans,” he added.

Ironically, Ike’s comments coincided with the company’s Indian arm announcing that it would set up a third manufacturing factory in the country, in Gujarat.

Ike was also critical of India’s complex taxation system and hoped for an early implementation of a simpler uniform goods and services tax.