Remove speed breakers on road to Mission Modi: Auto firms to govt

Global carmakers, including Honda and General Motors (GM), said on Friday that the government should make its policies more business friendly if the country wants to succeed in Prime Minister Narendra Modi 's 'Make In India' mission. They highlighted a host of obstacles such as difficulty in getting business permits, complex tax structure, poor infrastructure and logistics which are holding back growth of the auto industry.

"There are a considerable number of obstacles to doing business in this country. It is hoped that such obstacles will be cleared away under the new leadership of Prime Minister Modi," chairman of Japan Automobile Manufacturers Association and Honda Motor Company Fumihiko Ike said at the annual convention of Society of Indian Automobile Manufacturers.

Many Japanese auto parts suppliers were keen to establish operations in this country, Ike further said. However, these suppliers as well as auto manufacturers often encounter problems in obtaining business permits and completing paperwork required for acquisition of the business property, he lamented.

The complicated process of obtaining a plant construction permit in some cases has seriously hindered business plans, Ike added. These problems are further compounded by India's complex domestic taxation system, which varies from one state to other. These taxes, which are far more burdensome than international taxations standards, are also impending investment in India, Ike further added. Nissan senior vice-president and chairman for Africa, Middle East and India Takashi Hata said, "India must also modernise its creaking rail, port, road and other infrastructure and ease bureaucratic red tape.

Logistics and infrastructure are a clear disadvantage of the country." General Motors executive vicepresident Stefan Jacoby also said that to realise the full potential of the industry, "we would like the government to reform overall Central and state taxation policies in a timely manner".