India would need to improve its infrastructure, taxation system and labour laws in order to improve bilateral economic relationship with Japan, a top Japanese official has said.
"When we talk of improving the bilateral economic cooperation between the two countries, it is not only Japanese investments in India. There are other issues which needs to be addressed," Japan's ruling Liberal Democratic Party Director General International Bureau Kisaburo Tokai said.
"Infrastructure is still lacking (in India) and needs to be improved. The taxation system is also an issue, while the labour law reforms are long overdue," Tokai, who was leading a four-member Japanese MP delegation to India, said at a meeting organised by CII.
He said India and Japan, despite the sizes of their respective economies, have not had enough economic interaction "to commensurate their size". With Japan starting a relook to India, more Japanese companies are likely to enter the country in future, he added.
"Personally, I have tremendous interest in Research and Development activities taking place in India in information technology and lifescience," he said, adding those were areas for potential cooperation.
CII former president Sunil Kant Munjal said the current situation in India offered opportunity to both the countries to strengthen economic ties.
Although Japan was one of the first countries to enter India, it's investments and economic activities have gone down drastically over the years. Out of Japan's overall global trade only 45 per cent is accounted for by Asia, in which India's share is just one per cent.
{{/usCountry}}Although Japan was one of the first countries to enter India, it's investments and economic activities have gone down drastically over the years. Out of Japan's overall global trade only 45 per cent is accounted for by Asia, in which India's share is just one per cent.
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