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

2. 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 : 7 clusters)
New Knowledge Economy: IT & IT enabled services, Medical services, Education…. (Hi-tech, Innovation…)

3. 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

4. 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

5. 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

6. 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)

7. 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….

8. THANK YOU