Transcript [Project Name] Post

CLUSTER DEVELOPMENT IN
INDIA – STATUS AND
CHALLENGES AHEAD
Mukesh Gulati
UNIDO Cluster Development Programme
New Delhi
www.unido.org
India: Where extremes go together
•Old Economy: Micro enterprises among Handicrafts,
Handlooms….
•Traditional Industrial Economy: Textiles & Clothing,
Leather, Ceramics, Engg...
•New Knowledge Economy: IT &
IT enabled services,
Medical services, Education….
UNIDO-IADB-MIF International Meeting on Competitiveness of Small Enterprises: Clusters and Local Development
October 29 - 30, 2007 Washington, DC
www.unido.org
Economic Development – Shifting Paradigm
New Model
Old Model
Private Sector drives
economic development
through collaborative
process
involving government
at multiple levels, large
companies, teaching
and research
institutions
1991 G o India…
Government drives
economic development
through policy
decisions and
incentives to individual
Enterprises
UNIDO-IADB-MIF International Meeting on Competitiveness of Small Enterprises: Clusters and Local Development
Back
October 29 - 30, 2007 Washington, DC
www.unido.org
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
UNIDO-IADB-MIF International Meeting on Competitiveness of Small Enterprises: Clusters and Local Development
October 29 - 30, 2007 Washington, DC
www.unido.org
Ballooning Cluster Initiatives in India
1250/6400
1400
Total
clusters
1200
Artisanal $ 180 million in
1000
7 years
800
90% by Central
600
Government
Traditional/
Manufacturing
400
200
0
1987
1990
1993
1997
1999
2001
2003
2005
2006
UNIDO-IADB-MIF International Meeting on Competitiveness of Small Enterprises: Clusters and Local Development
October 29 - 30, 2007 Washington, DC
www.unido.org
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
UNIDO-IADB-MIF International Meeting on Competitiveness of Small Enterprises: Clusters and Local Development
October 29 - 30, 2007 Washington, DC
www.unido.org
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
Through
• Development of methodologies & tools, information provision
and consultancy services
• Fostering institutional linkages across thematic areas of
finance, infrastructure, environment, investment, R&D, Local
planning, BDS development….
• Training & grooming of competent professionals….
UNIDO-IADB-MIF International Meeting on Competitiveness of Small Enterprises: Clusters and Local Development
October 29 - 30, 2007 Washington, DC
www.unido.org
THANK YOU
UNIDO-IADB-MIF International Meeting on Competitiveness of Small Enterprises: Clusters and Local Development
October 29 - 30, 2007 Washington, DC