New Delhi: Japanese companies are facing a “series of problems" in India related to taxation and infrastructure, Japan’s ambassador to India Takeshi Yagi said on Thursday.

He said that although 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," he added.

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 fiscal.

India has received foreign direct investment of $17.69 billion between April 2000 and December 2014. It is 7% of the total FDI India has received during the period.

Yagi also said that more business friendly environment and greater ease of doing business would play a favourable role in increasing the presence of Japanese investments (rpt) investments in India. “Many more Japanese investors are just around the corner," he added.