Confluence of Japanese technology and UP's MSMEs to create new growth corridor
Japan-UP MSME Partnership Forum deliberates on investment, technology transfer, exports and employment generation
Japan-UP MSME Partnership Forum: Co-Creating Next Growth Corridor held on Friday


Japan City to develop a major hub for automation, robotics

and precision engineering

By combining Japanese technology with UP's skills, global

supply chain will be strengthened: MSME Minister Bhupendra Chaudhary

Loans worth Rs 1.40 lakh crore disbursed to MSMEs in the

first quarter: Principal Secretary Shashi Bhushan Lal Sushil

There is already a strong connection between Japanese

companies and UP's MSMEs: Secretary Pranjal Yadav

Lucknow, 21 Aug (HS): The Japan-UP MSME Partnership

Forum: Co-Creating the Next Growth Corridor was held on Friday in the

Mercury Hall of the Indira Gandhi Pratishthan in Lucknow. The forum discussed

in detail the possibilities of cooperation between Uttar Pradesh and Japan in

the fields of micro, small and medium enterprises (MSMEs), investment,

technology transfer, exports, startups, automobiles, textiles, handicrafts,

robotics, and employment.

Present at the event were MSME Minister Bhupendra Chaudhary,

Principal Secretary MSME Shashi Bhushan Lal Sushil, Secretary MSME and Export

Promotion Pranjal Yadav, senior administrative officials, the Japanese

delegation, academics, entrepreneurs, and representatives of industrial organizations.

Speakers said that Uttar Pradesh's vast MSME base and Japan's cutting-edge

technology can take the state to new heights in industrial development,

employment, and exports.

MSME Minister Bhupendra Chaudhary said that Uttar Pradesh

has over 9 million operational MSME units, accounting for approximately 14

percent of the country's total. The state government is pursuing a target of 15

percent annual growth rate in both MSME production and employment.

He stated that Uttar Pradesh is now a rapidly emerging state

for investment and industry. Improved law and order, modern infrastructure, and

a wide market offer immense investment potential for Japanese companies in the

state. He explained that a Japan City is being developed on

approximately 500 acres near the Jewar International Airport in Gautam Buddha

Nagar. This plug-and-play industrial ecosystem is an important step toward

becoming a major hub for cutting-edge fields like automation, robotics, and

precision engineering.

Bhupendra Chaudhary said that the quality improvement

methods of Japanese industries like Kaizen, 5S and Green Manufacturing will be

encouraged in the MSME units of the state. This will increase efficiency in the

production process, reduce costs and wastage and strengthen the global

competitiveness of the products of UP. He said that the state government is

giving a unique identity to the local products of all 75 districts through One

District One Product (ODOP). Self-employment and entrepreneurship opportunities

are being made available to the youth and traditional artisans through the

Chief Minister Yuva Swarojgar Yojana and Vishwakarma Shramik Samman Yojana.

Principal Secretary MSME Shashi Bhushan Lal Sushil said that

a strong financial base is being provided to the state's MSME sector. In the

first quarter of the current financial year alone, loans worth approximately Rs.

1.40 lakh crore have been distributed to MSME units. In the previous financial

year, this loan distribution was approximately Rs. 3 lakh crore. He said that

approximately 10 million MSME units in Uttar Pradesh provide employment to more

than 30 million people. The state's total exports exceed Rs. ₹2 lakh crore, of

which the MSME sector contributes approximately 45 percent.

Through the CM Yuva Abhiyan, financial assistance is being

provided to the youth for self-employment and setting up of enterprises. Till

now, interest-free loans of more than eight thousand crore rupees have been

given to about two lakh youths. A target has been set to provide loans to 10

lakh youths for setting up enterprises in the next ten years. Modern toolkits

have been provided to more than five lakh traditional artisans through ODOP and

Vishwakarma Shram Samman Yojana. This is helping in connecting traditional

skills with modern technology and market. One District One Cuisine Scheme is

also being taken forward in the state.

Uttar Pradesh's annual exports to Japan are approximately

$145 million. There is significant potential for expanding trade between the

two sides in sectors such as electrical machinery, organic chemicals, and

footwear, as well as food processing, handicrafts, and textiles. Five

plug-and-play factory complexes have been developed in the state, and

construction of similar industrial complexes is underway in other districts.

Pranjal Yadav, Secretary, Department of MSME and Export

Promotion, said that Uttar Pradesh is no longer known only for its large

population, but its global industrial profile has rapidly strengthened due to

strong law and order, modern infrastructure, and a large MSME base. He noted

that several major Japanese companies are already investing in Uttar Pradesh.

The presence of companies like Kubota, Escorts Kubota, and Minda Corporation

reflects the growing confidence of Japanese industries in the state.

Pranjal Yadav said that local MSME units like Albert Pistons

& Rings and Rednik Auto Exports of Ghaziabad are producing pistons, rings,

and auto parts and exporting them to Japanese companies like Honda and Yamaha. Additionally, several

smaller units in the state are manufacturing imitation jewelry and engineering

products and exporting them directly to Japan. He said that the Japan-UP MSME

Partnership Forum can act as an important bridge between the industrial

capabilities of the two countries. By adopting Japanese industrial technologies

and production systems, the state's MSME units can significantly increase their

efficiency, productivity, quality, and export potential.

Sudhir Rajgarhia, CEO of Rajgarhia Exports, Bareilly, stated

that Bareilly's nearly 1,200-year-old Zari-Zardozi art has been connected to

the global market through digital technology. He explained that his company,

which was started in 2018 with three people, now exports its products to over

200 countries. He added that working with international designers and adopting

digital technology has given local products a new identity in the global

market. Approximately 60 percent of the company's revenue goes to local

artisans. He added that Uttar Pradesh's digital revolution and ODOP policy have

played a crucial role in connecting small towns and local talent to the global

market. Technical and business partnerships with Japan can provide new markets

for many such local enterprises.

Dr. Mahip Singh, CEO of AKTU Innovation Hub, stated that Dr.

APJ Abdul Kalam Technical University is affiliated with over 760 institutions

and approximately 400,000 students. Uttar Pradesh boasts over 20,000 registered

startups and over 80 incubation centers. He added that centers of excellence

are being developed in the state in the fields of artificial intelligence,

cybersecurity, and robotics. There is vast potential for collaboration with

Japanese universities and industries in areas such as student exchange, joint

research and development, and semiconductor-robotics. He added that Uttar

Pradesh's technological and educational ecosystem can play a key role in

developing talented youth and innovation-based startups to meet the

technological needs of Japanese companies.

Yamini Bhushan Pandey, MD of the IIM Lucknow Enterprise

Incubation Center, stated that startups and entrepreneurship are rapidly

expanding in Uttar Pradesh. IIM Lucknow's incubation center has already

supported thousands of startups. She added that a soft landing

platform could be developed in Uttar Pradesh for Japanese MSMEs and

startups. This would help Japanese entrepreneurs understand the Indian market,

find local partners, and expand their businesses. She added that collaboration

between the Indian and Japanese startup ecosystems could lead to the

development of new business models, technological innovations, and investment

opportunities.

Lalit Thukral, Chairman of the Noida Apparel Export Cluster,

stated that approximately 1 million people are involved in Noida's garmenting

industry, and exports from here exceed Rs 50,000 crore. He added that India's

share in Japan's total readymade garment imports is currently approximately 1.2

percent, which has the potential to increase to 10 percent. The

international-level apparel park being developed in Noida, with approximately

225 factories, could play a significant role in additional exports and

employment generation. He added that improved trade relations with Japan and

the adoption of quality standards could further strengthen Uttar Pradesh's

textile and garment industry in the global market.

The forum noted that the proposed 500-acre Japan City near

Jewar Airport could play a significant role in reinvigorating industrial

relations between Uttar Pradesh and Japan. A plug-and-play ecosystem for

automation, robotics, precision engineering, and other modern industries is

being developed here. Concepts like Kaizen, 5S, and Green Manufacturing will be

encouraged to integrate the state's MSMEs with Japanese technology, quality

standards, and production methods. This will help reduce production costs,

improve quality, reduce waste, and strengthen export competitiveness.

Hindusthan Samachar / Abhishek Awasthi


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