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Phenomenon of large number of
Micro Small & Medium
industrial units manufacturing same (or similar products) existing
or historically developing in close proximity to each other (in
"Clusters") has been observed in different periods and
diverse industrial environment. "Clustering" as an
engine of growth was noticed internationally in well-networked
clusters (usually referred to as "Industrial Districts")
in developed countries, specially in Italy. this realization has
led to increase interest and research in clustering as well as
attempts to replicate process through planned interventions in developing
countries including India. Much of research and interventions have
been done by UNIDO, on international level and particularly in
India with ministry of
Micro Small & Medium Enterprises as counter part agency
and partner at national level.
According to UNIDO, a "Cluster" can be
defined as sectoral and geographical concentrations of entrepreneurs,
in particular small scale enterprises faced with common
opportunities and threats which can
(i) Give rise to external economies. (i.e. specialized
suppliers of raw materials, components and machinery, sector
specific skills etc.,)
(ii) Favor emergence of specialized technical, administrative
and financial services; and
(iii) create a conducive ground for development
of enter-firm co-operation and specialization as well as
co-operation among public and private local institutions to
promote local production, innovation and collective learning.
A cluster is generally identified by product or
(product in range) and the place where is is located. A complete
industry or a sector )like leather sector) can not be referred to
as a cluster.
The example of MSME Clusters in India are :
Ceramic Pottery cluster at Khurja, Leather and leather Garments
Cluster at Chennai, Hosiery Cluster at Kolkata etc.
Presently adopted approach for Cluster
development consists of drawing lessons from experience of
successful clusters and than replacing them through building up of
local capabilities with the active participation of various
clusters actors such as
Micro Small & Medium industrial Units, Industry association,
Business development services providers, policy makers etc.
Process of Cluster development usually consist of following
steps
Selection of Cluster.
Selection of the cluster development Agent.
Diagnostic study.
Preparation of action plan for intervention.
approval of Project. and release of funds
through leveraging.
Implementation of trust building between cluster
actor and clusters development agent, and also among Cluster
actors.
Monitoring and evaluation.
self management phase.
The Ministry of
Micro Small & Medium Enterprises, through
its successful collaboration efforts with UNIDO, and also
independently on its own, has initiated and completed series of
clusters development initiatives with a holistic approach spread
all over the country.
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