CLUSTER DEVELOPMENT IN INDIA – STATUS AND CHALLENGES AHEAD

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Presentation transcript:

CLUSTER DEVELOPMENT IN INDIA – STATUS AND CHALLENGES AHEAD Mukesh Gulati UNIDO Cluster Development Programme New Delhi

India: Where extremes go together Old Economy: Micro enterprises among Handicrafts, Handlooms…. (Low tech, Poverty): UNIDO 2000… Traditional Industrial Economy: Textiles & Clothing, Leather, Ceramics, Engg... (UNIDO 1996-2002: 7 clusters) New Knowledge Economy: IT & IT enabled services, Medical services, Education…. (Hi-tech, Innovation…)

Economic Development – Shifting Paradigm New Model Private Sector drives economic development through collaborative process involving government at multiple levels, large companies, teaching and research institutions Old Model Government drives economic development through policy decisions and incentives to individual Enterprises 1991 G o India… 1996 UNIDO… Back

Key Message Variety of objectives calls for customisation of approaches among clusters, yet Convergence of credit, technology, training…. Largely through private BDS & Collaboration with large private enterprises & collaboration with public institutions Reflect a significant paradigm shift

Ballooning Cluster Initiatives in India Total 200 400 600 800 1000 1200 1400 1987 1990 1993 1997 1999 2001 2003 2005 2006 Artisanal Traditional/ Manufacturing 1250/6400 clusters $ 180 million in 7 years 90% by Central Government

Challenges of Up-scaling Definition issues across diverse clusters & objectives Attitudinal changes at management levels in govt. and political leadership Incorporating flexibility and process orientation in administration of schemes of assistance Institutional capacities to deliver on the ground Conducive Monitoring & Evaluation systems Policy & Institutional linkages across ministries 2006: Empowered Group of Ministers (Big picture)

National Resource Centre – Foundation for MSME Clusters At National Ministry’s Suggestion & UNIDO’s technical assistance Set up in 2005 to provide technical support at regional, national and international levels (…9 countries) Through Development of methodologies & tools, information provision and consultancy services (mapping, strategies, M&E…) Fostering institutional linkages across thematic areas of finance, infrastructure, environment, investment, R&D, Local planning, BDS development…. Training & grooming of competent professionals….

THANK YOU