Within the SSI sector, an
important role is played by the numerous clusters that have been in existence
for decades. The SSE clusters in India are estimated to have a significantly
high share in employment generation. It is estimated that 400 modern SSE
and 2000 rural and artisan based clusters exist in India. These contribute
upto 60 percent of India's manufactured exports.
A Cluster is generally identified
by the product (or product range) and the place where it is located. A
complete industry or a sector (like the leather sector) cannot be referred
to as a Cluster. The process of cluster development usually consists of
the following steps :-
- Selection of a Cluster Development Agent
- Diagnostic Study
- Preparation of Action Plan for intervention
- Approval of the project and release of funds through leveraging
- Implementation of Trust Building between Cluster Actors and Cluster Development Agent, and also among Cluster Actors
- Monitoring and Evaluation
- Self Management Phase
It is on the basis of the availability of the basic raw materials, etc. required for setting up of a particular industry that certain States and districts are known for a specific group of industries. For example, the knitwear cluster of Ludhiana, Gems and Jewellery clusters of Surat and Mumbai, clusters of Chennai, Agra and Kolkata for leather and leather products, etc. Accordingly, there exists a List Of SME Clusters in India.
Several institutions in India have taken up Cluster Projects besides various government initiatives. UNIDO Cluster Development Programme (CDP) aims to contribute to the overall performance and collective efficiency of the small and medium enterprise clusters for sustainable development by assisting selected local communities of firms and associated institutions in the clusters. This entails the implementation of cluster support initiative in selected pilot clusters as well as assistance to central and local institutions in their programmes of cluster modernisation and restructuring.
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