India is ranked 63rd in the 2019 World Bank Global Ease of Doing Business Index. The complexity of laws, and lack of certainty and uniformity in their implementation, are challenging for traditionally conservative and risk averse Japanese companies.
The government has taken numerous steps to liberalize the economy and to introduce reforms to promote an investment friendly environment for Japanese and other foreign investors. The cordial ties between India and Japan have encouraged a closer economic partnership between them. While the economic, legal and policy reforms are encouraging, India continues to be a difficult terrain due to many challenges. Japanese companies regularly face problems relating to corruption, especially at lower police and government levels, direct and indirect taxation, labour laws, intellectual property rights, land acquisition, and contract enforcement.
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