Micro and Small Clusters for Sustainable Development

Micro and Small Clusters for Sustainable Development

MSMEs are facing numerous challenges. Some of these challenges are rising research and development costs, high risk and uncertainty in technological development, as well as lack of resources to pursue large-scale innovation projects.

• How Cluster approach is helpful?
  Cluster policies work towards strengthening of inter-firm collaboration, business networking and
  building up/strengthening of organisations for technology transfer.
  It also acts as a tool for alleviation of poverty, generation of sustainable employment, fostering
  innovation, infusing technology, enabling better credit flow and sustenance of environmental issues more effectively and sustainably.
  With cluster interventions, the unorganized sector starts getting more structured.
• Benefits of Cluster Approach:
  Formation of new business
  Network formation with supporting institutions
  Women empowerment
  Market development
  Product development
  Easy availability of finance
  Increase in sales, skills up gradation of workers and employment opportunities
• Cluster Development Initiatives: Starting with the Ministry of MSME, there are various ministries which have come up with their own cluster development schemes. Some of them are:
  Scheme of Fund for Regeneration of Traditional Industries (SFURTI) by MSME
  Solar Charkha Clusters by MSME
  Micro & Small Enterprises – Cluster Development Programme (MSE-CDP)
  Agro Processing Cluster Scheme by Ministry of Food Processing Industries
  Comprehensive Handloom Cluster Development Scheme by Ministry of Textiles
  Cluster Development Programme for Pharma Sector by Ministry of Chemicals & Fertilizers
  Mega Leather Cluster by Ministry of Commerce and Industry
  Ambedkar Hastshilp Vikas Yojana by Ministry of Textiles
  Industrial Infrastructure Up-gradation Scheme by Ministry of Commerce and Industry
  AYUSH clusters by Ministry of Health
  Craft Cluster by Ministry of Textiles
  Shyama Prasad Mukherji Rurban Mission (SPMRM) by Union Ministry of Rural Development
  Conclusion
• For a sustainable and inclusive economy, holistic cluster development approach will be the
  multiplication engine. It will be the catalyst for enterprise development and will provide a conducive ecosystem for their sustenance.
  The focus will need to be on unexplored sectors and geographies. For example, there exists huge scope of work in agriculture sector as a large percentage of vegetable and fruit produce gets wasted.
• There will be ripple effect, centred around the cluster which will have the potential of transforming thelocal and national economy.