The Japanese Ambassador to India Sakutaro Tanino feels that with the prevailing political uncertainty in India there is a growing need for state governments to independently formulate economic policies. Speaking at the inauguration of Intechmart '97 at Khajuraho on December 10, 1997, Tanino said that bureaucratic hurdles should be cut down if the country wants to prosper. Tanino spoke to Santosh Tiwary on the business potentials in Madhya Pradesh and the possibilities for co-operation between the Japanese and Indian small and medium companies.

What is the significance of Intechmart '97?

Although India is known globally, the states are yet to have a separate identity. I think this exercise of providing a one-to-one business interaction will help the state in the long run.

How important are the small and medium enterprises for the economic health of a country?

Our country achieved economic prosperity through SMEs. The same applies to Taiwan. Like Japan, India too should help SSIs to prosper through incentives, financial assistance and loans on concession.

Which are the potential sectors for co-operation between the two countries?

Auto components is a promising area. With almost all the auto giants establishing their production base in India, there is great demand for good component manufacturers. Indian herbal products are also in great demand in Japan, especially among women.

Do you think that the Japanese delegation's visit to the state will fructify into investments?

Investments will not pour in overnight. The Indian government should make efforts like Malaysia, where the Prime Minister himself visited Japan several times. You can not just sit and wait for the Japanese to come. You have to perform.

Do you think that technology transfer from Japan to the Indian small sector is possible?

Technology transfer is certainly possible. Recently we have discussed various forums through which the transfer can take place. However, I feel that it is more important for Indian units to focus on quality control. Punctuality and team work is also important for success.

What is the future of Indo-Japanese trade co-operation?

I think the future is promising as the Japanese businessmen have lately started showing enormous interest towards India. But I think business should not command the relationship. India has tremendous potential in tourism and should tap it by providing good airlines facilities.The Japanese want to come to India but they can't spend much. If India gives them a fair deal they will come in great numbers.