New Delhi, May 30 (IANS): Ahead of President Pranab Mukherjee's visit to Sweden, the union cabinet on Saturday approved signing of an agreement between India and Sweden to promote cooperation in micro, small and medium enterprises (MSME) sector.

"It provides a structured framework and enabling environment to the MSME sector in the two countries to understand each other's strengths, markets, technologies and policies," a cabinet communique said.

The MoU contains an agreement between the two countries to enable their respective MSMEs to participate in each other's trade fairs and exhibitions and to exchange business delegations so that joint ventures, tie-ups and technology transfers could take place, the statement said.

"It does not contain or involve any financial, legal or political commitment on the part of either party, the ministry of micro, small and medium enterprises said.

"In no case does it attract any financial liability on the part of the government of India," it added.

The ministry has so far entered into long-term agreements with 17 countries - Tunisia, Romania, Rwanda, Mexico, Uzbekistan, Lesotho, Sri Lanka, Algeria, Sudan, Cote d'lvoire, Egypt, Botswana, South Korea, Mozambique, Indonesia, Vietnam and Mauritius.