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CLUSTER DEVELOPMENT IN INDIA – STATUS AND CHALLENGES AHEAD

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…

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CLUSTER DEVELOPMENT IN INDIA – STATUS AND CHALLENGES AHEAD

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  1. CLUSTER DEVELOPMENT IN INDIA – STATUS AND CHALLENGES AHEAD MukeshGulati 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 1996-2002: 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. 1400 Total 1200 Artisanal 1000 800 600 Traditional/ Manufacturing 400 200 0 1987 1990 1993 1997 1999 2001 2003 2005 2006 Ballooning Cluster Initiatives in India • 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

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