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
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
- 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.