India seeks cooperation from Japan in MSME sector

India today asked Japan to increase cooperation in micro, small and medium enterprises (MSME) sector to increase economic engagement between the two countries.
"Inflow of Japanese MSME sector is very much needed to boost Indo-Japan relationship and the Japanese co-operation in the MSME sector in the technology transfer, investment, partnership and fully established areas can be come up," minister of state for commerce and industry EMS Natchiappan said here.
He was speaking at Assocham's India-Japan Business Conclave.
The MSME sector contributes 8 per cent to India's Gross Domestic Product (GDP) and 45 percent to manufactured output. The sector provides employment to over 8 crore people engaged in over 3.6 crore units, producing more than 6,000 products.

On the land acquisition law, he said that the act would not act as a hurdle in industrial development.
The minister assured the investors that the government would help investors to resolve their issues.

"If you look at the Land Acquisition, Rehabilitation and Resettlement Act, the first appearance may be very troublesome but is in no way a barrier in industrial development," he added.
He asked the industry to engage with local people for land acquisition processes.
"If you want to establish an industry you don't have to feel shy in discussing with people who've been possessing land for generations and centuries and these people living around the area should be made party to the development of the industry as it will go a long way and save time from litigation," the Minister said.

Natchiappan further informed that German companies have been granted 4,000 acres of land near near Bangalore to set up units.
"In the Hossur area we are working together with the state government and they are contributing more than 3,000 acres and German companies are ready to invest their money there," he added.