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Japan calls on India to remove red tape

NEW DELHI - Japan, which is keen to step up economic relations with India, on Friday called upon Delhi to remove "red tape" and simplify licensing procedures to make the country an attractive investment destination.

"It is my understanding that currently India is not a single economic space. Every step towards that goal will make India that much more attractive as an investment candidate," Japanese Foreign Affairs Minister Yoriko Kawaguchi said.

She said "Japan is watching with keen interest the economic policies of the new Indian government" on improved infrastructure, labor and tax law reforms and promotion of privatization. "Success or failure in this challenge will have a clear impact on India's economic relationship with Japan," Kawaguchi observed.

Pointing out that India's exports to Japan account for a mere 4% of India's software exports, she said Japan is eager to change the present trade relations between the two countries.

Kawaguchi said even though Indo-Japan trade figures are invariably lower than those of India-China and Indo-Korea, there is huge potential to increase them.

She also pointed out Indo-Japan partnerships in infrastructure projects like the Delhi Metro and other transport and electricity projects.

The foreign minister proposed setting up a Joint Study Group for strengthening the economic relations.

(Asia Pulse/PTI)

Aug 17, 2004

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