He said huge potential exists between the two countries to enhance bilateral trade and investment, the figure is not satisfactory currently and is stagnant.
“Japanese companies continue to face series of problems on customs, taxation and infrastructure,” Yagi said.
“We strongly hope that the new policies and campaigns and initiatives which have been launched by the new government will be materialised as laws and administrative measures will be materialised on the ground.”
Yagi was speaking at CII’s International Engineering and Technology Fair (IETF) 2015.
His comments assume significance as Japan is one of the countries which Prime Minister Narendra Modi is focusing on for investments.
The Department of Industrial Policy and Promotion (DIPP) had set up Japan Plus to facilitate and fast-track investment proposals from Japan.
Bilateral trade between India and Japan was $16.29 billion in 2013-14, as compared to $18.51 billion in the previous financial year.
India has received foreign direct investment (FDI) of $17.69 billion between April 2000 and December 2014. It is 7 per cent of the total FDI India has received during the period.
Yagi also said a more business-friendly environment and greater ease of doing business would play a favourable role in increasing the Japanese presence in India.
“Many more Japanese investors are just around the corner,” he added.
The number of Japanese companies in India has increased by 137 in the past one year, marking a 13 per cent jump over the previous year.
The total number of Japanese companies registered in India now is 1,209 as against 1,072 as in October 2013.
DIPP Secretary Amitabh Kant said the government is committed to take steps to improve ease of doing business in the country.
“We will make India a easy place for people to enter and exit. This is a challenge but we have taken up this task. We have announced several steps to improve ease of doing business...Japanese companies will grow and prosper in India and not in Japan,” Kant said.
Japan is the partner country at the 21st IETF 2015. Around 60 Japanese firms will display and demonstrate their latest products and offerings to the Indian market.
Besides, a delegation of 27 members from Keidanren, the Japanese business federation, would interact with the Indian industry towards strengthening the bilateral relationships.
“We are fully aware and appreciate that the new government led by PM Modi has expressed its strong intention to reform, for example by submitting a constitutional (Amendment) bill to bring in goods and services tax, relaxing foreign equity restriction in insurance sector,” Yagi said.