SlideShare a Scribd company logo
1 of 27
CLUSTER DEVELOPMENT
IN INDIA
Presented by:
Hareesh.M
ID.NO:2014600120
DEFINITION OF A CLUSTER
 A Cluster is A group of enterprises located within an identifiable and as
far as practicable, contiguous area, producing same/similar product/
services
 A Cluster is defined by
 a product/product range (same or similar)
 and a place (name of a city, town, village)
 A Cluster:
 does not involve a complete industry or a sector
 must not be equated to an industrial park development concept
Objectives of Cluster Develop
Programme
To conduct the soft activities and hard activities
under soft and hard interventions for following
objectives :
1. To enhance the productivity and
competitiveness of micro and small enterprises.
2. To facilitate economies of scale in terms of
deployment of resources.
3. To built capacity of MSEs through formation of
SHG, Mutual credit guarantee funds, BDS
development etc.
WHY CLUSTER DEVELOPMENT?
 Enables to reach out to many units at a time
 Provides environment for mutual learning
 Emerging from the felt-needs of the beneficiaries
 Self-sustainability for continuous support
 Clusters provide unique opportunity to address specific needs with
specific solutions
 Clusters provide economies of operation of scale
 Increased impact and widening support from other support institutions
 Satisfies the needs of foreign buyers
WHY CLUSTER DEVELOPMENT
REQUIRES STATE INTERVENTION?
 Cluster development is a long-term phenomenon with lower gains
visible in short to medium term
 Common facilities and programmes need State’s effort
 Gains when they occur, are for sharing across the cluster
THE INDIAN SME CLUSTERS
SCENARIO
 With a contribution of 40 per cent to the country’s industrial output and 35
per cent to direct exports, India’s SME (Small and Medium Enterprises)
sector is the key driver in the nation’s economic growth.
 India has 388 documented industrial clusters, around 400 handloom
clusters, about 3,000 handicraft clusters and 2,800 micro-enterprise clusters
that contribute significantly to its economy and provide employment to
more than 20 million people.
 3.57 million SSIs, across 7,500 products spread over the country
 350 SSI and 2000 artisans clusters contribute to 60% of exports
Among the larger clusters,
 Panipat accounting for 75 per cent of the total blankets produced in the
country.
 Tirupur, which is responsible for 80 per cent of the country’s cotton
hosiery exports.
 Agra with 800 registered and 6,000 unregistered small scale units making
about 150,000 pairs of shoes per day with a daily production value of $1.3
million and exports worth $60 million per year.
 Ludhiana, alone contributes 95 per cent of the country’s woolen knitwear,
85 per cent of the country’s sewing machines and 60 per cent of the
nation’s bicycle and bicycle parts.
WHAT IS A CLUSTER?
Cluster : An agglomeration of SSI Units?
Unit Unit
Unit
Unit Unit
METHODOLOGY OF CLUSTER
DEVELOPMENT
 Selection of a Cluster
 Selection of a Cluster Development Agent
 Diagnostic study
 Trust building
 Preparation of action plan for intervention
 Approval of budget and further leveraging funds
 Implementation by trust building between Cluster Actors and CDA;
Between Actor and other Actors
 Monitoring and evaluation
 Handing over and exit
CLUSTER DEVELOPMENT
INITIATIVES IN INDIA
Several institutions in India have taken up Cluster Projects besides various
government initiatives. The major ones being:
Central Government
 Development Commissioner (SSI), Ministry of Small Scale Industries
 National Small Industrial Corporation Ltd (NSIC)
 Development Commissioner (Handicrafts), Ministry of Textile
National Support Institutions
 Small Industries Development Bank of India (SIDBI) Technology
Upgradation Programme
 State Bank of India (SBI) UPTECH Programme
 National Bank for Agriculture & Rural Development (NABARD)
State Governments
 The State governments which have started cluster development initiatives
are:
 Andhra Pradesh ,Gujarat,Kerala,Madhya Pradesh,Tamil Nadu
ACHIEVEMENTS AND NEW
INITIATIVES IN CLUSTER
DEVELOPMENT BY THE
MINISTRY OF SSI
UPTECH SCHEME:
THE EARLY INITIATIVE
 Launched in 1998
 Aimed at development of selected clusters
 Initially, emphasis on Technology Upgradation
 Early interventions in Clusters of Ceramic Tiles, Bulk Drugs and
Formulations, Foundry and Forging, Food Processing, Potteries etc.
ASSOCIATION WITH UNIDO FOCAL
POINT
 Ministry of SSI: the official counterpart agency in India
 To provide a platform for sharing mutual learning & best practices
 To design SME Cluster Development policies & Tools
 National Level Steering Committee headed by AS&DC(SSI)
 Interventions: Direct as well as through State Govts. & national
institutions.
 Intervention in 4 Clusters completed, 3 nearing completion and 17
under implementation
 Assisting Ministry of SSI to set up a comprehensive CDP
SECTORAL NATIONAL
PROGRAMMES
IN COLLABORATION WITH UNIDO
 Industry & demand driven programmes
 Active contribution in financing and implementation by UNIDO, State
Govts, FI’s, Industry Associations.
 Comprehensive support services in technology upgradation, market
development, capacity building & sustainability
 New interventions planned for knitwear, bicycle & parts
SMALL INDUSTRY CLUSTER
DEVELOPMENT PROGRAMME (SSI-CDP)
 Ministry’s own programme
 Envisages comprehensive coverage of the whole country
 Adopts a holistic approach
 Capable partner institutions welcome to join
 Stakeholders’ contribution & participation encouraged
PARAMETERS FOR SELECTION OF
CLUSTERS UNDER SSI-CDP
 Distinct Technology & product
 Potential for growth
 Contribution to employment
 Local leadership & support
 Basic infrastructure
 Presence of capable institutions
 Recommended by other agencies
 Need for socio-environ interventions
NEED FOR EXPERIENCE SHARING
 Mutual learning among implementing agencies in India
 Learning from clusters outside the country
 Repository of experiences and observation necessary at the national
level
Based upon 2 digit classification of NIC, distribution of clusters
among important industry groups has been presented
MICRO & SMALL ENTERPRISES - CLUSTER
DEVELOPMENT PROGRAMME (MSE-CDP)
 Contribution of Ministry of MSME (Govt. of India) will not exceed
80% of the total project cost. Subject to a ceiling of Rs. 10 crore per
project including Rs. 10 lakh for soft activities under soft interventions.
 Scheme expects at least 10% contribution from stake holders/
beneficiaries of the cluster projects.
AN OVERVIEW OF ARTISAN BASED
RURAL CLUSTERS IN INDIA
 India had initiated the program for rural industrialization in 1957 by
starting the Khadi and Village
 Industries Program followed by Rural Industries program in 1962
 However, in reality several units that came up attracted by these
incentives and subsidies did not last long because of limited markets,
lack of raw material, inappropriate skills and above all inadequate
infrastructure
 According to an estimate there are about 2000 rural clusters in India.
These are mainly skill based
KEY CONSTRAINTS IN DEVELOPMENT OF
CLUSTERS IN RURAL AREAS
(i) Lack of education and awareness among the rural entrepreneurs and
artisans,
(ii) Lack of organization among the entrepreneurs ,
(iii) Lack of marketing skills,
(iv) Dependency proneness on Government,
(v) Limited reach and effectiveness of the development assistance
(vi) Lack of infrastructure facilities such as electricity and roads
The consortium initiatives are much more effective and sustainable if they
involve the entire range of actors with whom the SMEs commonly interact.
Among such actors are :
 Suppliers of raw materials, plant & machinery
❖ Consumers of goods and services from the SMEs testing
laboratories (both private and public)
❖ Research and development institutions
❖ Industrial associations
❖ Technical, marketing and management consultancy organisations
❖ Training institutions
❖ Regulatory bodies enforcing/monitoring rules and regulations
❖ Local government
❖ Financial institutions For banks and financial institutions, the cluster
approach may be beneficial as
❖ Separate packages/services can be developed for each cluster
❖ Products/services so developed can provide better yields
The ultimate result due to cluster
projects
1. Increased income, investment, capacity
utilisation, cost deduction, community
empowerment, energy conservation, pollution
control.
2. Infrastructure creation and linkage through
govt. scheme.
3. Enhance collective economic efficiency
4. Developing culture of co-operation and team
work
5. Strengthened local governance strength.
6. Creation of competitive market.
Thank you

More Related Content

What's hot

Sustainable rural development group 7
Sustainable rural development group 7Sustainable rural development group 7
Sustainable rural development group 7Priyank Deshmukh
 
pradhan mantri gram sadak yojona
pradhan mantri gram sadak yojona pradhan mantri gram sadak yojona
pradhan mantri gram sadak yojona Sk Rabial
 
Rural economy of India (Rural Development - Principles, Policies, and Managem...
Rural economy of India (Rural Development - Principles, Policies, and Managem...Rural economy of India (Rural Development - Principles, Policies, and Managem...
Rural economy of India (Rural Development - Principles, Policies, and Managem...Abhinav Saxena
 
Rural Entrepreneurship In India
Rural Entrepreneurship In IndiaRural Entrepreneurship In India
Rural Entrepreneurship In IndiaAnubha Rastogi
 
Education,Employment and skill development
Education,Employment and skill developmentEducation,Employment and skill development
Education,Employment and skill developmentPremashis Kumar
 
Role of NGO in Urban Areas
Role of NGO in Urban AreasRole of NGO in Urban Areas
Role of NGO in Urban AreasParth Sagdeo
 
Rural development in india through entrepreneurship
Rural development in india through entrepreneurshipRural development in india through entrepreneurship
Rural development in india through entrepreneurshipvijay kumar sarabu
 
Grameen bank ppt final
Grameen bank ppt finalGrameen bank ppt final
Grameen bank ppt finalSumit Singh
 
Farmer Producer Organization FPO of India Presentation for international conf...
Farmer Producer Organization FPO of India Presentation for international conf...Farmer Producer Organization FPO of India Presentation for international conf...
Farmer Producer Organization FPO of India Presentation for international conf...Dr Dilip Vishnu Deshpande
 
Role of panchayati Raj in Rural Development
Role of panchayati Raj in Rural DevelopmentRole of panchayati Raj in Rural Development
Role of panchayati Raj in Rural DevelopmentAvinash Chandra
 
A Brief About Pradhan Mantri Awas Yojana
A Brief About Pradhan Mantri Awas YojanaA Brief About Pradhan Mantri Awas Yojana
A Brief About Pradhan Mantri Awas YojanaAnamika Verma
 

What's hot (20)

Sustainable rural development group 7
Sustainable rural development group 7Sustainable rural development group 7
Sustainable rural development group 7
 
pradhan mantri gram sadak yojona
pradhan mantri gram sadak yojona pradhan mantri gram sadak yojona
pradhan mantri gram sadak yojona
 
Rural economy of India (Rural Development - Principles, Policies, and Managem...
Rural economy of India (Rural Development - Principles, Policies, and Managem...Rural economy of India (Rural Development - Principles, Policies, and Managem...
Rural economy of India (Rural Development - Principles, Policies, and Managem...
 
DRDA Basic strategy.
DRDA Basic strategy.DRDA Basic strategy.
DRDA Basic strategy.
 
SGSY
SGSYSGSY
SGSY
 
Rural Entrepreneurship In India
Rural Entrepreneurship In IndiaRural Entrepreneurship In India
Rural Entrepreneurship In India
 
Education,Employment and skill development
Education,Employment and skill developmentEducation,Employment and skill development
Education,Employment and skill development
 
Rural Entrepreneurship
Rural EntrepreneurshipRural Entrepreneurship
Rural Entrepreneurship
 
Rural industrialisation
Rural industrialisationRural industrialisation
Rural industrialisation
 
Role of NGO in Urban Areas
Role of NGO in Urban AreasRole of NGO in Urban Areas
Role of NGO in Urban Areas
 
Rural development in india through entrepreneurship
Rural development in india through entrepreneurshipRural development in india through entrepreneurship
Rural development in india through entrepreneurship
 
Grameen bank ppt final
Grameen bank ppt finalGrameen bank ppt final
Grameen bank ppt final
 
need for agricultural Policy
need for agricultural Policyneed for agricultural Policy
need for agricultural Policy
 
MGNREGA
MGNREGAMGNREGA
MGNREGA
 
Farmer Producer Organization FPO of India Presentation for international conf...
Farmer Producer Organization FPO of India Presentation for international conf...Farmer Producer Organization FPO of India Presentation for international conf...
Farmer Producer Organization FPO of India Presentation for international conf...
 
NRLM
NRLMNRLM
NRLM
 
Role of panchayati Raj in Rural Development
Role of panchayati Raj in Rural DevelopmentRole of panchayati Raj in Rural Development
Role of panchayati Raj in Rural Development
 
E NAM
E NAM E NAM
E NAM
 
A Brief About Pradhan Mantri Awas Yojana
A Brief About Pradhan Mantri Awas YojanaA Brief About Pradhan Mantri Awas Yojana
A Brief About Pradhan Mantri Awas Yojana
 
Convegence
ConvegenceConvegence
Convegence
 

Viewers also liked

Presentation done by Klauss Hasis
Presentation done by Klauss HasisPresentation done by Klauss Hasis
Presentation done by Klauss HasisDr. Amit Kapoor
 
Cluster Management Makes the Difference
Cluster Management Makes the DifferenceCluster Management Makes the Difference
Cluster Management Makes the DifferenceGerd Meier zu Koecker
 
Presentation done by Gerd meier zu Kocker
Presentation done by Gerd meier zu Kocker Presentation done by Gerd meier zu Kocker
Presentation done by Gerd meier zu Kocker Dr. Amit Kapoor
 
Toolbox Network Management Process Final
Toolbox Network Management Process FinalToolbox Network Management Process Final
Toolbox Network Management Process FinalFITT
 
TCIOceania16 Fostering Innovation, Ecosystems and Entrepreneurship
TCIOceania16 Fostering Innovation, Ecosystems and EntrepreneurshipTCIOceania16 Fostering Innovation, Ecosystems and Entrepreneurship
TCIOceania16 Fostering Innovation, Ecosystems and EntrepreneurshipTCI Network
 
Mesos: Cluster Management System
Mesos: Cluster Management SystemMesos: Cluster Management System
Mesos: Cluster Management SystemErhan Bagdemir
 
Etude PwC créances non-stratégiques (2014)
Etude PwC créances non-stratégiques (2014)Etude PwC créances non-stratégiques (2014)
Etude PwC créances non-stratégiques (2014)PwC France
 
Cluster basics: Cluster Management
Cluster basics: Cluster ManagementCluster basics: Cluster Management
Cluster basics: Cluster ManagementTCI Network
 
Presentation done by RK Singh
Presentation done by RK SinghPresentation done by RK Singh
Presentation done by RK SinghDr. Amit Kapoor
 
Presentation done by Joan Marti
Presentation done by Joan MartiPresentation done by Joan Marti
Presentation done by Joan MartiDr. Amit Kapoor
 
Khadi as cluster activity
Khadi as cluster activityKhadi as cluster activity
Khadi as cluster activityAdane Nega
 
Urban complexity's role in a practical emergent urbanism
Urban complexity's role in a practical emergent urbanismUrban complexity's role in a practical emergent urbanism
Urban complexity's role in a practical emergent urbanismMathieu Hélie
 
Business intelligence implementation_in_SME_in_INDIA
Business intelligence implementation_in_SME_in_INDIABusiness intelligence implementation_in_SME_in_INDIA
Business intelligence implementation_in_SME_in_INDIANavin Shukla
 
Indian SME Market- B2C in Size, B2B in behaviour
Indian SME Market- B2C in Size, B2B in behaviourIndian SME Market- B2C in Size, B2B in behaviour
Indian SME Market- B2C in Size, B2B in behaviourBUSYforSMEs
 
PPT OF URBANIZATION FACTS & FUNDAMENTALS
PPT OF URBANIZATION FACTS & FUNDAMENTALSPPT OF URBANIZATION FACTS & FUNDAMENTALS
PPT OF URBANIZATION FACTS & FUNDAMENTALSEminent Planners
 

Viewers also liked (20)

Presentation done by Klauss Hasis
Presentation done by Klauss HasisPresentation done by Klauss Hasis
Presentation done by Klauss Hasis
 
Cluster Management Makes the Difference
Cluster Management Makes the DifferenceCluster Management Makes the Difference
Cluster Management Makes the Difference
 
Presentation done by Gerd meier zu Kocker
Presentation done by Gerd meier zu Kocker Presentation done by Gerd meier zu Kocker
Presentation done by Gerd meier zu Kocker
 
Toolbox Network Management Process Final
Toolbox Network Management Process FinalToolbox Network Management Process Final
Toolbox Network Management Process Final
 
TCIOceania16 Fostering Innovation, Ecosystems and Entrepreneurship
TCIOceania16 Fostering Innovation, Ecosystems and EntrepreneurshipTCIOceania16 Fostering Innovation, Ecosystems and Entrepreneurship
TCIOceania16 Fostering Innovation, Ecosystems and Entrepreneurship
 
Mesos: Cluster Management System
Mesos: Cluster Management SystemMesos: Cluster Management System
Mesos: Cluster Management System
 
Etude PwC créances non-stratégiques (2014)
Etude PwC créances non-stratégiques (2014)Etude PwC créances non-stratégiques (2014)
Etude PwC créances non-stratégiques (2014)
 
MRO SME inwac tour
MRO SME inwac tourMRO SME inwac tour
MRO SME inwac tour
 
Cluster basics: Cluster Management
Cluster basics: Cluster ManagementCluster basics: Cluster Management
Cluster basics: Cluster Management
 
Presentation done by RK Singh
Presentation done by RK SinghPresentation done by RK Singh
Presentation done by RK Singh
 
Presentation done by Joan Marti
Presentation done by Joan MartiPresentation done by Joan Marti
Presentation done by Joan Marti
 
Khadi as cluster activity
Khadi as cluster activityKhadi as cluster activity
Khadi as cluster activity
 
Urban complexity's role in a practical emergent urbanism
Urban complexity's role in a practical emergent urbanismUrban complexity's role in a practical emergent urbanism
Urban complexity's role in a practical emergent urbanism
 
Global 2013 mro_market_study
Global 2013 mro_market_studyGlobal 2013 mro_market_study
Global 2013 mro_market_study
 
The india sme potential
The india sme potentialThe india sme potential
The india sme potential
 
Business intelligence implementation_in_SME_in_INDIA
Business intelligence implementation_in_SME_in_INDIABusiness intelligence implementation_in_SME_in_INDIA
Business intelligence implementation_in_SME_in_INDIA
 
New Urbanism Intro CNU
New Urbanism Intro CNUNew Urbanism Intro CNU
New Urbanism Intro CNU
 
Indian SME Market- B2C in Size, B2B in behaviour
Indian SME Market- B2C in Size, B2B in behaviourIndian SME Market- B2C in Size, B2B in behaviour
Indian SME Market- B2C in Size, B2B in behaviour
 
PPT OF URBANIZATION FACTS & FUNDAMENTALS
PPT OF URBANIZATION FACTS & FUNDAMENTALSPPT OF URBANIZATION FACTS & FUNDAMENTALS
PPT OF URBANIZATION FACTS & FUNDAMENTALS
 
Urbanization impacts
Urbanization    impactsUrbanization    impacts
Urbanization impacts
 

Similar to Cluster development final

Cluster development in india print out
Cluster development in india print outCluster development in india print out
Cluster development in india print outHareesh M
 
institutional support in Entrepreneurship
institutional support in Entrepreneurshipinstitutional support in Entrepreneurship
institutional support in EntrepreneurshipSahil Kamdar
 
Govt policies & schemes for entreprise development
Govt policies & schemes for entreprise developmentGovt policies & schemes for entreprise development
Govt policies & schemes for entreprise developmentAmit Attri
 
Msme indian eco
Msme indian ecoMsme indian eco
Msme indian ecoKowsarAli2
 
Policy and Status Paper on Cluster Development in India.pdf
Policy and Status Paper on Cluster Development in India.pdfPolicy and Status Paper on Cluster Development in India.pdf
Policy and Status Paper on Cluster Development in India.pdfTheBambooLink
 
Micro Small and Medium Enterprise
Micro Small and Medium EnterpriseMicro Small and Medium Enterprise
Micro Small and Medium EnterpriseSavi Arora
 
Various Govt. Schemes for Startups VMT
Various Govt. Schemes for Startups VMTVarious Govt. Schemes for Startups VMT
Various Govt. Schemes for Startups VMTVishal Tidake
 
Startup Incubation in Agriculture Sector.pptx
Startup Incubation in Agriculture Sector.pptxStartup Incubation in Agriculture Sector.pptx
Startup Incubation in Agriculture Sector.pptxPappu Kumar
 
govt-20032312293y3g2g2g22ggwgwg4 (1).pptx
govt-20032312293y3g2g2g22ggwgwg4 (1).pptxgovt-20032312293y3g2g2g22ggwgwg4 (1).pptx
govt-20032312293y3g2g2g22ggwgwg4 (1).pptxssuserff0096
 
Material handling and equipment
Material handling and equipmentMaterial handling and equipment
Material handling and equipmentshyam narayan
 
Role played-by-central-state-government-to-promote-entrepreneurship
Role played-by-central-state-government-to-promote-entrepreneurshipRole played-by-central-state-government-to-promote-entrepreneurship
Role played-by-central-state-government-to-promote-entrepreneurshiphulk_raghav
 
Govt. policies & scheme for enterprise development
Govt. policies & scheme for enterprise development Govt. policies & scheme for enterprise development
Govt. policies & scheme for enterprise development Gauravchaudhary199
 
An Analysis of Micro, Small and Medium Enterprises in India
An Analysis of Micro, Small and Medium Enterprises in IndiaAn Analysis of Micro, Small and Medium Enterprises in India
An Analysis of Micro, Small and Medium Enterprises in IndiaABDUL MOIZZ
 
Ksm garment cluster final presentation
Ksm garment cluster final presentationKsm garment cluster final presentation
Ksm garment cluster final presentationVictor Nyamwange
 
Entrepreneurial Support System
Entrepreneurial Support SystemEntrepreneurial Support System
Entrepreneurial Support SystemProf. Dr. Y. Giri
 

Similar to Cluster development final (20)

Cluster development in india print out
Cluster development in india print outCluster development in india print out
Cluster development in india print out
 
institutional support in Entrepreneurship
institutional support in Entrepreneurshipinstitutional support in Entrepreneurship
institutional support in Entrepreneurship
 
Delhi msme summit
Delhi msme summit Delhi msme summit
Delhi msme summit
 
shailaja ppt.pptx
shailaja ppt.pptxshailaja ppt.pptx
shailaja ppt.pptx
 
Govt policies & schemes for entreprise development
Govt policies & schemes for entreprise developmentGovt policies & schemes for entreprise development
Govt policies & schemes for entreprise development
 
Msme indian eco
Msme indian ecoMsme indian eco
Msme indian eco
 
Policy and Status Paper on Cluster Development in India.pdf
Policy and Status Paper on Cluster Development in India.pdfPolicy and Status Paper on Cluster Development in India.pdf
Policy and Status Paper on Cluster Development in India.pdf
 
Micro Small and Medium Enterprise
Micro Small and Medium EnterpriseMicro Small and Medium Enterprise
Micro Small and Medium Enterprise
 
MSME - KVIC - Startup - Business Incubators
MSME - KVIC - Startup - Business IncubatorsMSME - KVIC - Startup - Business Incubators
MSME - KVIC - Startup - Business Incubators
 
Various Govt. Schemes for Startups VMT
Various Govt. Schemes for Startups VMTVarious Govt. Schemes for Startups VMT
Various Govt. Schemes for Startups VMT
 
Startup Incubation in Agriculture Sector.pptx
Startup Incubation in Agriculture Sector.pptxStartup Incubation in Agriculture Sector.pptx
Startup Incubation in Agriculture Sector.pptx
 
govt-20032312293y3g2g2g22ggwgwg4 (1).pptx
govt-20032312293y3g2g2g22ggwgwg4 (1).pptxgovt-20032312293y3g2g2g22ggwgwg4 (1).pptx
govt-20032312293y3g2g2g22ggwgwg4 (1).pptx
 
Material handling and equipment
Material handling and equipmentMaterial handling and equipment
Material handling and equipment
 
Role played-by-central-state-government-to-promote-entrepreneurship
Role played-by-central-state-government-to-promote-entrepreneurshipRole played-by-central-state-government-to-promote-entrepreneurship
Role played-by-central-state-government-to-promote-entrepreneurship
 
Govt. policies & scheme for enterprise development
Govt. policies & scheme for enterprise development Govt. policies & scheme for enterprise development
Govt. policies & scheme for enterprise development
 
An Analysis of Micro, Small and Medium Enterprises in India
An Analysis of Micro, Small and Medium Enterprises in IndiaAn Analysis of Micro, Small and Medium Enterprises in India
An Analysis of Micro, Small and Medium Enterprises in India
 
Small Beginnings, Vision Unlimited
Small Beginnings, Vision Unlimited Small Beginnings, Vision Unlimited
Small Beginnings, Vision Unlimited
 
Ksm garment cluster final presentation
Ksm garment cluster final presentationKsm garment cluster final presentation
Ksm garment cluster final presentation
 
Material Handling Equipment Sector
Material Handling Equipment SectorMaterial Handling Equipment Sector
Material Handling Equipment Sector
 
Entrepreneurial Support System
Entrepreneurial Support SystemEntrepreneurial Support System
Entrepreneurial Support System
 

More from Hareesh M

Sampling types-presentation-business research
Sampling types-presentation-business researchSampling types-presentation-business research
Sampling types-presentation-business researchHareesh M
 
Mutual funds types-presentation-hareesh
Mutual funds types-presentation-hareeshMutual funds types-presentation-hareesh
Mutual funds types-presentation-hareeshHareesh M
 
factories act, bonus act, trade union act- industrial relations
factories act, bonus act, trade union act- industrial relationsfactories act, bonus act, trade union act- industrial relations
factories act, bonus act, trade union act- industrial relationsHareesh M
 
leasing and hire purchase
leasing and hire purchaseleasing and hire purchase
leasing and hire purchaseHareesh M
 
Factories act,bonus act,trade union act presentation-hareesh
Factories act,bonus act,trade union act presentation-hareeshFactories act,bonus act,trade union act presentation-hareesh
Factories act,bonus act,trade union act presentation-hareeshHareesh M
 
Derivatives futures,options-presentation-hareesh
Derivatives futures,options-presentation-hareeshDerivatives futures,options-presentation-hareesh
Derivatives futures,options-presentation-hareeshHareesh M
 
Business research term paper-hareesh
Business research term paper-hareeshBusiness research term paper-hareesh
Business research term paper-hareeshHareesh M
 
Work study method and time study-final - copy
Work study method and time study-final - copyWork study method and time study-final - copy
Work study method and time study-final - copyHareesh M
 
Indian,japanese,u.s style of management ppt-final
Indian,japanese,u.s style of management ppt-finalIndian,japanese,u.s style of management ppt-final
Indian,japanese,u.s style of management ppt-finalHareesh M
 
Indian,japanese,u.s style of management ppt-final
Indian,japanese,u.s style of management ppt-finalIndian,japanese,u.s style of management ppt-final
Indian,japanese,u.s style of management ppt-finalHareesh M
 
Customer satisfaction final
Customer satisfaction finalCustomer satisfaction final
Customer satisfaction finalHareesh M
 
Customer satisfaction analysis final
Customer satisfaction analysis finalCustomer satisfaction analysis final
Customer satisfaction analysis finalHareesh M
 
Employee engagement final
Employee engagement finalEmployee engagement final
Employee engagement finalHareesh M
 
Work study method-and_time_study-final
Work study method-and_time_study-finalWork study method-and_time_study-final
Work study method-and_time_study-finalHareesh M
 
Auctions final
Auctions finalAuctions final
Auctions finalHareesh M
 
Hrms presentation-hareesh
Hrms presentation-hareeshHrms presentation-hareesh
Hrms presentation-hareeshHareesh M
 
Supply chain management presentation
Supply chain management presentationSupply chain management presentation
Supply chain management presentationHareesh M
 

More from Hareesh M (18)

Sampling types-presentation-business research
Sampling types-presentation-business researchSampling types-presentation-business research
Sampling types-presentation-business research
 
Mutual funds types-presentation-hareesh
Mutual funds types-presentation-hareeshMutual funds types-presentation-hareesh
Mutual funds types-presentation-hareesh
 
factories act, bonus act, trade union act- industrial relations
factories act, bonus act, trade union act- industrial relationsfactories act, bonus act, trade union act- industrial relations
factories act, bonus act, trade union act- industrial relations
 
leasing and hire purchase
leasing and hire purchaseleasing and hire purchase
leasing and hire purchase
 
Factories act,bonus act,trade union act presentation-hareesh
Factories act,bonus act,trade union act presentation-hareeshFactories act,bonus act,trade union act presentation-hareesh
Factories act,bonus act,trade union act presentation-hareesh
 
Derivatives futures,options-presentation-hareesh
Derivatives futures,options-presentation-hareeshDerivatives futures,options-presentation-hareesh
Derivatives futures,options-presentation-hareesh
 
Business research term paper-hareesh
Business research term paper-hareeshBusiness research term paper-hareesh
Business research term paper-hareesh
 
Hypothesis
HypothesisHypothesis
Hypothesis
 
Work study method and time study-final - copy
Work study method and time study-final - copyWork study method and time study-final - copy
Work study method and time study-final - copy
 
Indian,japanese,u.s style of management ppt-final
Indian,japanese,u.s style of management ppt-finalIndian,japanese,u.s style of management ppt-final
Indian,japanese,u.s style of management ppt-final
 
Indian,japanese,u.s style of management ppt-final
Indian,japanese,u.s style of management ppt-finalIndian,japanese,u.s style of management ppt-final
Indian,japanese,u.s style of management ppt-final
 
Customer satisfaction final
Customer satisfaction finalCustomer satisfaction final
Customer satisfaction final
 
Customer satisfaction analysis final
Customer satisfaction analysis finalCustomer satisfaction analysis final
Customer satisfaction analysis final
 
Employee engagement final
Employee engagement finalEmployee engagement final
Employee engagement final
 
Work study method-and_time_study-final
Work study method-and_time_study-finalWork study method-and_time_study-final
Work study method-and_time_study-final
 
Auctions final
Auctions finalAuctions final
Auctions final
 
Hrms presentation-hareesh
Hrms presentation-hareeshHrms presentation-hareesh
Hrms presentation-hareesh
 
Supply chain management presentation
Supply chain management presentationSupply chain management presentation
Supply chain management presentation
 

Recently uploaded

Project Management Professional (PMP)® from PMI
Project Management Professional (PMP)® from PMIProject Management Professional (PMP)® from PMI
Project Management Professional (PMP)® from PMITasnur Tonoy
 
Principles of Management analyze how Zara manage
Principles of Management analyze how Zara managePrinciples of Management analyze how Zara manage
Principles of Management analyze how Zara managessuser4899c8
 
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdfTEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdfmarcuskenyatta275
 
Leading People - Harvard Manage Mentor Certificate
Leading People - Harvard Manage Mentor CertificateLeading People - Harvard Manage Mentor Certificate
Leading People - Harvard Manage Mentor CertificateVICTOR MAESTRE RAMIREZ
 
Team Dynamics: A Journey to Excellence
Team Dynamics: A Journey to ExcellenceTeam Dynamics: A Journey to Excellence
Team Dynamics: A Journey to ExcellenceGDSC PJATK
 
Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...
Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...
Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...Travis Hills MN
 
Create the recognition your teams deserve.pptx
Create the recognition your teams deserve.pptxCreate the recognition your teams deserve.pptx
Create the recognition your teams deserve.pptxStephen Sitton
 
UX in an Agile World - Scrum Gathering
UX in an Agile World -   Scrum GatheringUX in an Agile World -   Scrum Gathering
UX in an Agile World - Scrum GatheringKaizenko
 
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...kamrulShuva
 
Risk Management in Banks - Overview (May 2024)
Risk Management in Banks - Overview (May 2024)Risk Management in Banks - Overview (May 2024)
Risk Management in Banks - Overview (May 2024)Kristi Rohtsalu
 

Recently uploaded (10)

Project Management Professional (PMP)® from PMI
Project Management Professional (PMP)® from PMIProject Management Professional (PMP)® from PMI
Project Management Professional (PMP)® from PMI
 
Principles of Management analyze how Zara manage
Principles of Management analyze how Zara managePrinciples of Management analyze how Zara manage
Principles of Management analyze how Zara manage
 
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdfTEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
 
Leading People - Harvard Manage Mentor Certificate
Leading People - Harvard Manage Mentor CertificateLeading People - Harvard Manage Mentor Certificate
Leading People - Harvard Manage Mentor Certificate
 
Team Dynamics: A Journey to Excellence
Team Dynamics: A Journey to ExcellenceTeam Dynamics: A Journey to Excellence
Team Dynamics: A Journey to Excellence
 
Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...
Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...
Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...
 
Create the recognition your teams deserve.pptx
Create the recognition your teams deserve.pptxCreate the recognition your teams deserve.pptx
Create the recognition your teams deserve.pptx
 
UX in an Agile World - Scrum Gathering
UX in an Agile World -   Scrum GatheringUX in an Agile World -   Scrum Gathering
UX in an Agile World - Scrum Gathering
 
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
 
Risk Management in Banks - Overview (May 2024)
Risk Management in Banks - Overview (May 2024)Risk Management in Banks - Overview (May 2024)
Risk Management in Banks - Overview (May 2024)
 

Cluster development final

  • 1. CLUSTER DEVELOPMENT IN INDIA Presented by: Hareesh.M ID.NO:2014600120
  • 2. DEFINITION OF A CLUSTER  A Cluster is A group of enterprises located within an identifiable and as far as practicable, contiguous area, producing same/similar product/ services  A Cluster is defined by  a product/product range (same or similar)  and a place (name of a city, town, village)  A Cluster:  does not involve a complete industry or a sector  must not be equated to an industrial park development concept
  • 3. Objectives of Cluster Develop Programme To conduct the soft activities and hard activities under soft and hard interventions for following objectives : 1. To enhance the productivity and competitiveness of micro and small enterprises. 2. To facilitate economies of scale in terms of deployment of resources. 3. To built capacity of MSEs through formation of SHG, Mutual credit guarantee funds, BDS development etc.
  • 4. WHY CLUSTER DEVELOPMENT?  Enables to reach out to many units at a time  Provides environment for mutual learning  Emerging from the felt-needs of the beneficiaries  Self-sustainability for continuous support  Clusters provide unique opportunity to address specific needs with specific solutions  Clusters provide economies of operation of scale  Increased impact and widening support from other support institutions  Satisfies the needs of foreign buyers
  • 5. WHY CLUSTER DEVELOPMENT REQUIRES STATE INTERVENTION?  Cluster development is a long-term phenomenon with lower gains visible in short to medium term  Common facilities and programmes need State’s effort  Gains when they occur, are for sharing across the cluster
  • 6. THE INDIAN SME CLUSTERS SCENARIO  With a contribution of 40 per cent to the country’s industrial output and 35 per cent to direct exports, India’s SME (Small and Medium Enterprises) sector is the key driver in the nation’s economic growth.  India has 388 documented industrial clusters, around 400 handloom clusters, about 3,000 handicraft clusters and 2,800 micro-enterprise clusters that contribute significantly to its economy and provide employment to more than 20 million people.  3.57 million SSIs, across 7,500 products spread over the country  350 SSI and 2000 artisans clusters contribute to 60% of exports
  • 7. Among the larger clusters,  Panipat accounting for 75 per cent of the total blankets produced in the country.  Tirupur, which is responsible for 80 per cent of the country’s cotton hosiery exports.  Agra with 800 registered and 6,000 unregistered small scale units making about 150,000 pairs of shoes per day with a daily production value of $1.3 million and exports worth $60 million per year.  Ludhiana, alone contributes 95 per cent of the country’s woolen knitwear, 85 per cent of the country’s sewing machines and 60 per cent of the nation’s bicycle and bicycle parts.
  • 8. WHAT IS A CLUSTER? Cluster : An agglomeration of SSI Units? Unit Unit Unit Unit Unit
  • 9. METHODOLOGY OF CLUSTER DEVELOPMENT  Selection of a Cluster  Selection of a Cluster Development Agent  Diagnostic study  Trust building  Preparation of action plan for intervention  Approval of budget and further leveraging funds  Implementation by trust building between Cluster Actors and CDA; Between Actor and other Actors  Monitoring and evaluation  Handing over and exit
  • 10. CLUSTER DEVELOPMENT INITIATIVES IN INDIA Several institutions in India have taken up Cluster Projects besides various government initiatives. The major ones being: Central Government  Development Commissioner (SSI), Ministry of Small Scale Industries  National Small Industrial Corporation Ltd (NSIC)  Development Commissioner (Handicrafts), Ministry of Textile National Support Institutions  Small Industries Development Bank of India (SIDBI) Technology Upgradation Programme  State Bank of India (SBI) UPTECH Programme  National Bank for Agriculture & Rural Development (NABARD) State Governments  The State governments which have started cluster development initiatives are:  Andhra Pradesh ,Gujarat,Kerala,Madhya Pradesh,Tamil Nadu
  • 11. ACHIEVEMENTS AND NEW INITIATIVES IN CLUSTER DEVELOPMENT BY THE MINISTRY OF SSI
  • 12. UPTECH SCHEME: THE EARLY INITIATIVE  Launched in 1998  Aimed at development of selected clusters  Initially, emphasis on Technology Upgradation  Early interventions in Clusters of Ceramic Tiles, Bulk Drugs and Formulations, Foundry and Forging, Food Processing, Potteries etc.
  • 13. ASSOCIATION WITH UNIDO FOCAL POINT  Ministry of SSI: the official counterpart agency in India  To provide a platform for sharing mutual learning & best practices  To design SME Cluster Development policies & Tools  National Level Steering Committee headed by AS&DC(SSI)  Interventions: Direct as well as through State Govts. & national institutions.  Intervention in 4 Clusters completed, 3 nearing completion and 17 under implementation  Assisting Ministry of SSI to set up a comprehensive CDP
  • 14. SECTORAL NATIONAL PROGRAMMES IN COLLABORATION WITH UNIDO  Industry & demand driven programmes  Active contribution in financing and implementation by UNIDO, State Govts, FI’s, Industry Associations.  Comprehensive support services in technology upgradation, market development, capacity building & sustainability  New interventions planned for knitwear, bicycle & parts
  • 15. SMALL INDUSTRY CLUSTER DEVELOPMENT PROGRAMME (SSI-CDP)  Ministry’s own programme  Envisages comprehensive coverage of the whole country  Adopts a holistic approach  Capable partner institutions welcome to join  Stakeholders’ contribution & participation encouraged
  • 16. PARAMETERS FOR SELECTION OF CLUSTERS UNDER SSI-CDP  Distinct Technology & product  Potential for growth  Contribution to employment  Local leadership & support  Basic infrastructure  Presence of capable institutions  Recommended by other agencies  Need for socio-environ interventions
  • 17. NEED FOR EXPERIENCE SHARING  Mutual learning among implementing agencies in India  Learning from clusters outside the country  Repository of experiences and observation necessary at the national level
  • 18.
  • 19.
  • 20. Based upon 2 digit classification of NIC, distribution of clusters among important industry groups has been presented
  • 21.
  • 22. MICRO & SMALL ENTERPRISES - CLUSTER DEVELOPMENT PROGRAMME (MSE-CDP)  Contribution of Ministry of MSME (Govt. of India) will not exceed 80% of the total project cost. Subject to a ceiling of Rs. 10 crore per project including Rs. 10 lakh for soft activities under soft interventions.  Scheme expects at least 10% contribution from stake holders/ beneficiaries of the cluster projects.
  • 23. AN OVERVIEW OF ARTISAN BASED RURAL CLUSTERS IN INDIA  India had initiated the program for rural industrialization in 1957 by starting the Khadi and Village  Industries Program followed by Rural Industries program in 1962  However, in reality several units that came up attracted by these incentives and subsidies did not last long because of limited markets, lack of raw material, inappropriate skills and above all inadequate infrastructure  According to an estimate there are about 2000 rural clusters in India. These are mainly skill based
  • 24. KEY CONSTRAINTS IN DEVELOPMENT OF CLUSTERS IN RURAL AREAS (i) Lack of education and awareness among the rural entrepreneurs and artisans, (ii) Lack of organization among the entrepreneurs , (iii) Lack of marketing skills, (iv) Dependency proneness on Government, (v) Limited reach and effectiveness of the development assistance (vi) Lack of infrastructure facilities such as electricity and roads
  • 25. The consortium initiatives are much more effective and sustainable if they involve the entire range of actors with whom the SMEs commonly interact. Among such actors are :  Suppliers of raw materials, plant & machinery ❖ Consumers of goods and services from the SMEs testing laboratories (both private and public) ❖ Research and development institutions ❖ Industrial associations ❖ Technical, marketing and management consultancy organisations ❖ Training institutions ❖ Regulatory bodies enforcing/monitoring rules and regulations ❖ Local government ❖ Financial institutions For banks and financial institutions, the cluster approach may be beneficial as ❖ Separate packages/services can be developed for each cluster ❖ Products/services so developed can provide better yields
  • 26. The ultimate result due to cluster projects 1. Increased income, investment, capacity utilisation, cost deduction, community empowerment, energy conservation, pollution control. 2. Infrastructure creation and linkage through govt. scheme. 3. Enhance collective economic efficiency 4. Developing culture of co-operation and team work 5. Strengthened local governance strength. 6. Creation of competitive market.