During Japan FM’s Visit, Japanese Firms Lobby for a Better Business Environment in India
The Wire Staff
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New Delhi: Japanese companies told the visiting foreign minister, Yoshimasa Hayashi, that they want a “more predictable” and “transparent” business environment in India, even as Tokyo said that it was up to India as the G20 president to reach a consensus on language over Ukraine for a joint communique.
The Japanese foreign minister arrived in India on July 28, Friday and chaired a Strategic Dialogue with external affairs minister S. Jaishankar. On Friday morning, the two ministers took part in a public interaction at the India-Japan Forum. It was followed by a lunch meeting with representatives of Japanese companies and the Japan Chamber of Commerce and Industry in India.
At a briefing for the Indian press, Japanese foreign ministry’s deputy press secretary, Yukiko Okano, said the “view” from the Japanese firms in India was that “they would like to see a more predictable, stable and transparent business environment”, especially related to regulatory and tax issues.
She added that while this was not discussed on Friday, “we have also heard that infrastructure challenges were raised in the past”.
The Japanese spokesperson noted that the business chambers had raised these issues with Indian authorities from time to time.
Earlier, the Japanese foreign ministry’s press release on the Strategic Dialogue had said that minister Hayashi had “requested cooperation to improve the investment environment and for the early establishment of a Joint Crediting Mechanism”.
As per Japanese figures, Japan is India’s third largest trading partner and fifth largest investor in 2021. There are around 1,439 Japanese firms having presence in India.
During Japanese prime minister Fumio Kishida’s visit last year, a target of public and private investment of five trillion yen in India over the next five years till 2027 was established.
Okano said that there was “steady” progress in meeting the target, but added that both sides were not releasing yearly figures on that front.
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When asked about discussions on the Ukraine conflict on which India and Japan have varying positions, the Japanese diplomat said that both countries share “fundamental principles” that “territorial integrity and sovereignty should be protected” and that the use of force to change status quo “is not permissible”.
She reminded that Prime Minister Narendra Modi had a “very good meeting” with the Ukrainian president Volodymyr Zelensky on the sidelines of G7 summit hosted by Japan in Hiroshima.
When asked whether Japan wants Zelensky to participate at the G20 summit, she said, “We are okay either way on whether India invites Zelensky.”
She said that the language of the joint communique is still under discussion between the G20 countries.
Noting that the G7 will not dilute their position on Ukraine irrespective of the forum, the Japanese deputy press spokesperson said, “When it comes to the joint communique, [it is] up to the president on how to reach a consensus.”
Also read: Why Is India Unable to Criticise the Country That Has Invaded Ukraine?
Earlier speaking at the India-Japan forum, Hayashi said that at a time when there are many pressing challenges, including Russia's aggression against Ukraine, Japan and India “fully share the necessity to lead the world to cooperation, rather than to division and confrontation”
"The free and open international order based on the rule of law is key to realising such a world," he said.
Stating that India is an "indispensable" partner in achieving a free and open Indo-Pacific, Hayashi said "free" means each country is free to make decisions based on its own sovereignty and "open" means respect for principles, including inclusiveness, openness and diversity.
"It is vital that we refrain from imposing values or excluding certain countries. This concept is especially crucial for smaller countries. In coordination with India, Japan intends to materialise such a concept through realising a 'Free and Open Indo-Pacific' or FOIP," he said
The Japanese prime minister will be back in India for the second consecutive year to attend the G20 summit in September.
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