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Welcome To Chairpersons, Experts, Speakers and Delegates National Workshop On MSME Cluster Developme

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Ministry of Textiles (IHCDP), DC (Handlooms) 2005-06 ... Ministries of Government of India involved : MSME, Textiles and Industry and Commerce ... – PowerPoint PPT presentation

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Title: Welcome To Chairpersons, Experts, Speakers and Delegates National Workshop On MSME Cluster Developme


1
WelcomeToChairpersons, Experts, Speakers and
DelegatesNational WorkshopOn MSME Cluster
Development(28 29 January 2008)Hotel Samrat,
New Delhi
National Resource Centre for Cluster Development
(NRCD)
2
Sponsors
  • Keynote Address
  • Dr. Chukka Kondaiah
  • Director General

National Institute For Micro, Small And Medium
Enterprises (ni-msme) Formerly Known as National
Institute of Small Industry Extension Training
(nisiet) (An organization of Ministry of MSME,
Government of India) Yousufguda, Hyderabad 500
045 (A.P.)
3
Introduction
  • Historically, India is endowed with a number of
    indigenous enterprise clusters
  • Predominantly occupational, artisanal and rural
    in nature
  • Emergence of manufacturing, hi-tech and service
    enterprise clusters in post-independent era
  • Now, over 6,400 clusters in India
  • Opened up many opportunities and challenges with
    liberalisation of countrys economy (1991)

4
Development of Cluster Strategy Major
Initiatives
  • SBIs Project UPTECH - 1988
  • UNIDOs Study - 1996
  • Cluster development programme (CDP) by UNIDO
    1997
  • Policy recommendation by Abid Hussain Committee
    - 1997
  • Ministry of MSME (MSE CDP) initiated cluster
    approach 1998
  • Textile Committee of India 2002-03
  • NABARDs Cluster Development Programme 2003-04

5
Development of Cluster Strategy Major
Initiatives
  • Ministry of Commerce and Industry (IIUS)2004-05
  • Ministry of MSME (SFURTI) 2005-06
  • SIDBI World Bank (PMD) 2005-06
  • Ministry of Textiles (IHCDP), DC (Handlooms)
    2005-06
  • Ministry of Textiles Scheme for Integrated
    Textile Parks 2005-06
  • NMCC, NCEUS Traditional Manufacturing 2006-07
  • Efforts state governments (Kerala, M.P., Orissa
    and Rajasthan) 2003-05

6
International Initiatives
  • ILO - Small Enterprise Development (Handicraft)
    2000
  • UNIDO CDP, Orissa 2005-06
  • SIDBI - Business Development Service for SMEs
    2005-06 (with the support of international
    funding agencies)
  • UNIDO - Consolidated Project for SME Development
    in India 2007

7
Status and Support to MSME Clusters in India
  • Largest number of clusters in the world (6,400
    estimated)
  • Traditional Manufacturing 400
  • Artisan/Rural/Indigenous/Occupation6,000
  • Estimated employment 75 lakhs
  • Manufactured exports of Indias Total 60
  • Accelerated cluster development with the
    initiation of Ministry of MSME 2003
  • Emergence of NRCD at ni-msme with the support of
    DC, MSME Jan.2004

8
Status and Support to MSME Clusters in India
  • No. of Schemes/Programmes in operation 24
  • Ministries of Government of India involved
    MSME, Textiles and Industry and Commerce
  • Other Ministries to be involved Food Processing,
    Rural Development and Tribal Affairs
  • Financial and support institutions involved SBI,
    SIDBI, NABARD, NMDFC, NEDFI and NMCC

9
The Workshop Relevance
  • Estimated resources to be invested in cluster
    development Rs.3,400 4,000 crore in next five
    years
  • Stakeholders of Cluster Development Institutions/
    Organisations
  • Six central ministries (likely more to join)
  • Financial institutions (FIs)
  • State governments
  • Technical agencies (TAs)

10
The Workshop Relevance
  • Implementing agencies (IAs)
  • Public/ private BDS institutions
  • National R D Laboratories
  • Industry associations/networks
  • Premier professional institutions
  • International support and financial agencies

11
The Workshop Relevance
  • A decade of Cluster Development
  • 24 schemes supported 1,358 clusters (278
    manufacturing and 1,080 micro enterprises)
  • Several billions of rupees spent on cluster
    development programme (actual figure to be
    ascertained)

12
Aim of the Workshop
  • Bring together and synergise the efforts of
    stakeholders, to deliberate on specific themes to
    meet future opportunities and challenges
  • Make recommendations to central ministries, state
    governments and stakeholders from the proceedings
    of the workshop to accelerate cluster development
    in the country
  • Enable economic growth through MSME cluster
    development

13
Theme 1Policy Implications for Cluster
Development
  • Cluster definition facilitating policy adoption
  • Role clarity NA, IA, TA, CDA/E, NDA, BDS
  • BDS development for wide interventions (including
    international BDS)
  • PublicPrivate Partnerships (PPPs)
  • Environmental compliance
  • Institutional collaboration in soft and hard
    interventions
  • Appropriate resource allocation
  • Actionable cluster development policy in Central
    Ministries and State Governments

14
Theme - 2Clusters Employment Generation and
Poverty Reduction
  • Cost per employment in MSEs Rs.0.72 lakh as
    against Rs.5.80 lakh in large industry
  • Deliberate and develop strategy for employment
    intensive and poverty reduction clusters
  • Skill upgradation, quality, market expansion,
    prototype development
  • Social capital and empowerment
  • Development of entrepreneurial qualities among
    cluster actors

15
Theme - 2Clusters Employment Generation and
Poverty Reduction
  • Credit support current status and future need
  • Cost-benefit analysis hard and soft
    interventions
  • Infrastructure development as per the requirement
    of stakeholders (CFC, raw material banks, storage
    points, common production centres, distribution
    channels etc.)
  • Employment intensive clusters and large industry
    linkages

16
Theme 3Business Development Services
  • Inadequacy of BDS providers for hard and soft
    interventions
  • Involvement of premier professional institutions
    (IITs, IIMs, national institutes, industry
    associations, private institutions, national
  • R D institutions)
  • Continuity and sustainability of BDS
  • Information support for international BDS
  • Development of BDS in energy, environment and HR
    audits
  • Learning experience from successful BDS
    interventions (GTZ)

17
Theme 4Investment Promotion Technology
Transfer
  • Induce adaptable technologies for more
    investments
  • Encourage technological innovation among
    artisan/rural clusters
  • Learning experience from UNIDO consolidated
    project for SME development in India (cluster
    twinning, mutual credit guarantee and technology
    transfer)
  • Role of venture capitalists
  • Financial schemes for innovative technologies
  • Application of ICT in clusters

18
Theme 5Cluster MSME Financing and Development
  • Initiatives for specific financial products,
    particularly micro enterprise clusters
  • Enhance the limits of Mutual Guarantee Scheme
    (currently Rs.1.00 lakh per unit to a maximum of
    10 units)
  • Further simplification of sanction procedures
  • Credit guarantee scheme vis-à-vis cluster
    associations/ consortia
  • Creation of cluster finance divisions in apex
    national banks
  • Experience sharing of SIDBI (with international
    funding agencies)
  • Micro finance products for artisan/rural clusters

19
Theme 6Infrastructure Development Common
Facilities
  • Ensure proportionate fund allocation based on
    cluster requirement (e.g., SFURTI, IHCDP and
    MSECDP)
  • Plan compatibility of hard interventions with
    cluster actors
  • Examine relevance of BOT Scheme
  • Speedy clearance for land procurement
  • Facilitate cluster actors to effectively manage
    SPV and CFC
  • Promote viable technology as per cluster needs
  • Role of professional organisations/management
    consultants for implementation
  • Soft skills development in the management of
    infrastructure facilities
  • Establish effective linkages between institutions
    and cluster associations

20
Theme 7Cluster Development Implementation
Strategy
  • Role clarity of Nodal Agency (NA), Technical
    Agency (TA), Implementing Agency (IA) and CDA/E,
    NDA
  • Promote more competent TAs/service providers
  • Develope competent CDA/E, NDA and technical
    advisers
  • Adequate resource deployment for TAs and IAs
  • Realistic action plans and budgetary support
  • Review of DSRs by professionals/agencies with
    cluster actors
  • Participatory approach among stakeholders for
    action plan implementation
  • States role (involvement and commitment of
    governments)

21
Theme 7Cluster Development Implementation
Strategy
  • Need for pressure groups within the cluster for
    speedy implementation
  • Flexible duration of implementation
  • Integrate BDS in the implementation
  • Strengthen associations/consortia
  • Encourage tax compliance by cluster actors
  • Evaluation and monitoring of interventions
  • Cluster development as a remedial measure for
    social maladies (e.g., child labour, alcoholism,
    gender inequality, health and sanitation)

22
Theme 8Future Directions
  • Formulation of relevant cluster development
    policies at central and state governments level
  • Policy review mechanism and suitable suggestions
  • Promote clusters and networks for participation
    in global value chain
  • Encourage business linkages between MNCs and MSME
    clusters
  • Encourage the cluster actors on IPR compliance
    and GI Rights
  • Enhance cooperation between clusters of similar
    products within the country and other countries
  • MSME cluster development as a teaching module in
    professional institutions

23
Theme 8Future Directions
  • Promote innovation to face global challenges
  • Develop cluster professionals in supporting
    agencies
  • Develop suitable methodology for artisan/rural
    clusters
  • Develop induced clusters (on the lines of SEZs)
    new policy and implementation
  • Develop business information hubs/networking
  • Share Indian success and mutual learning
    partnership with other countries

24
Thank you
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