City Cluster Economic Development (CCED) India Case Study

1. City Cluster Economic Development (CCED) India Case Study SPMS-NIUA-APDS Supported by ADB WUF 5: Rio, Brazil March 2010

2. Objectives of CCED • Assess spatial and economic characteristics and explain patterns • Identify key challenges • Explore good practices and innovative solutions • Develop innovative strategies • Disseminate knowledge

3. NCR Total Area -30242 Sq Kms Total population -37 Million (2001)

6. Manufacturing Concentration - NCR

7. Four Important Manufacturing Industries For NCR • Textiles- Readymade garments • Auto Components • General Engineering • IT Enabled Services

10. Faridabad General Engineering

12. Major Characteristics –RMG NCR • Around 40% of the Readymade Garments (RMG) of the country are made in NCR • It is one of the largest sources for different types of Readymade Garments • There are approximately 2500 units comprising of manufacturers, fabricators, Embroidery and other supporting units. • The Okhla cluster contributes about 16 % to the total readymade garments exported from India. • Most of the small firms have family owned expertise in areas such as quality controller, finance controller etc. except a few diploma holders for merchandising. • Large firms and export houses have commercially qualified employees for production, inventory control and designing work.

13. Okhla RMG

15. Faridabad Engineering Cluster -Activities The long-run vision of the cluster is “The Faridabad Engineering cluster will become highly competitive in both domestic and international markets by adopting the best practices in production process improved technology and innovative marketing” Short Term Activites • Quality and standards • Productivity improvement • To improve use of Information Technology in the cluster • Expanding markets and enhancing market penetration • Improving supply chain management practices • Workers’ health and safety programmes • To improve access to finance • Joint purchase of raw material • Tool Room Facilities • Reverse Engineering and CAD/ CAM Centre • Testing Centre (up gradation) of QMC Long Term Activites

16. R&D and innovations Training Support Proposed Interventions- Okhla RMG Cluster Based Government Support Knowledge Sharing Quality Control and Improvement Cutting Room Re-organisation and Fabric Control Productivity Improvement • Plant layout • Garment Engineering • Use of standards • Line balancing • Production friendly Sample development • Production planning • Sewing Operator Training • Raw Material • Store • Pattern Making of Specialized products Textile Knowledge centre EDP / IT Application

17. Okhala Garment And Textiles Cluster

18. Strategic Plan for Competitiveness • Develop Strategic Partnerships • Develop linkages between the local industrial units, technological and research institutes • Participation in domestic and international trade fairs • Networking of stakeholders for convergence of services • Commitment to Social Responsibility • Seek Govt. participation in authoritative manner • Remove bottlenecks in infrastructure • Work towards resolution of critical issues for SME’s

19. Major learning

20. CCED 2 Preparation of Baseline Information- Data, industry structure value chain and spatial location Investment Analysis and Opportunities Prepare pre-feasibility study of a selected action plan for a marketable inter-sectoral project for the garment industry cluster.

21. PEARL/INDIA Peer Experience And Reflective Learning (PEARL) under JnNURM To create manageable networks between JNNURM 65 PEARL website (www.indiaurbanportal.in). Documentation of URBAN best practices. Newsletter “PEARL Update” . Conducting National and Groups Workshops.