Transcript WELCOME TO PRESENTATION ON INITIATIVES AND …

WELCOME TO
A PRESENTATION
ON
CLUSTER DEVELOPMENT
ROADMAP FOR THE PRESENTATION
• Section I:
Concept of Industrial Clusters & the
perspective for their development
• Section II:
Achievements and new initiatives
in Cluster Development by the
Ministry of SSI
• Section III:
Emerging issues
SECTION- I
INDUSTRIAL CLUSTERS & THE
PERSPECTIVE FOR THEIR
DEVELOPMENT
WHAT IS A CLUSTER?
Cluster : An agglomeration of SSI Units?
Unit
Unit
Unit
Unit
Unit
Cluster : A FORWARD AND BACKWARD
LINKED Production System?
Unit
Unit
Backward
linkages
Forward
linkages
Raw
Material
Suppliers
Selling
Agent
Unit
Unit
Machinery
Suppliers
Unit
Unit
Unit
Direct
Customers
Or does a Cluster have more to it…..?
POLICY ENVIRONMENT
Commercial Service Providers
(Designer, Testing Laboratory, Transporter, Financier, Import Agents etc.)
Production System
Backward
linkages
Unit
Forward
linkages
Unit
Selling
Agents
Raw Material
Suppliers
Unit
Unit
Direct
Consumers
Machinery
Suppliers
Unit
Unit
Unit
(Public & Private) Support and Service Institution
INTERNATIONAL ENVIRONMENT
DEFINITION OF A CLUSTER
• A Cluster is a geographic concentration of firms
and their various service providers
• A Cluster is defined by
– a product/product range (same or similar)
– and a place (name of a city, town, village)
• A Cluster:
– does not involve a complete industry or a sector
– must not be equated to an industrial park development
concept
THE INDIAN SSI CLUSTERS SCENARIO
• 3.57 million SSIs, across 7,500 products spread
over the country
• 350 SSI and 2000 artisans clusters contribute to
60% of exports
• Clusters provide natural agglomeration for
wholesaling of support in the diversified panorama
of individual needs, individual market pools and
specific socio-economic context for the SSIs
WHY CLUSTER DEVELOPMENT?
• Enables to reach out to many units at a time
• Provides environment for mutual learning
• Emerging from the felt-needs of the beneficiaries
• Self-sustainability for continuous support
• Clusters provide unique opportunity to address
specific needs with specific solutions
• Clusters provide economies of operation of scale
• Increased impact and widening support from other
support institutions
• Satisfies the needs of foreign buyers
WHY CLUSTER DEVELOPMENT
REQUIRES STATE INTERVENTION?
• Cluster development is a long-term
phenomenon with lower gains visible in
short to medium term
• Common facilities and programmes need
State’s effort
• Gains when they occur, are for sharing
across the cluster
METHODOLOGY OF CLUSTER
DEVELOPMENT
• Selection of a Cluster
• Selection of a Cluster Development Agent
• Diagnostic study
• Trust building
• Preparation of action plan for intervention
• Approval of budget and further leveraging funds
• Implementation by trust building between Cluster
Actors and CDA; Between Actor and other Actors
• Monitoring and evaluation
• Handing over and exit
SECTION-II
Achievements and new initiatives
in cluster development by the
Ministry of SSI
UPTECH SCHEME:
THE EARLY INITIATIVE
• Launched in 1998
• Aimed at development of selected clusters
• Initially, emphasis on Technology Upgradation
• Early interventions in Clusters of Ceramic
Tiles, Bulk Drugs and Formulations, Foundry
and Forging, Food Processing, Potteries etc.
ASSOCIATION WITH UNIDO FOCAL POINT
• Ministry of SSI: the official counterpart agency in
India
• To provide a platform for sharing mutual learning &
best practices
• To design SME Cluster Development policies & Tools
• National Level Steering Committee headed by
AS&DC(SSI)
• Interventions: Direct as well as through State Govts.
& national institutions.
• Intervention in 4 Clusters completed, 3 nearing
completion and 17 under implementation
• Assisting Ministry of SSI to set up a comprehensive
CDP
SECTORAL NATIONAL PROGRAMMES
IN COLLABORATION WITH UNIDO
• Industry & demand driven programmes
• Cover Stone, Machine Tools, Toys and Lock Industry
Clusters
• Active contribution in financing and implementation
by UNIDO, State Govts, FI’s, Industry Associations.
• Comprehensive support services in technology
upgradation, market development, capacity building
& sustainability
• Visible Impact, leading to demand from new sectors
• New interventions planned for knitwear, bicycle &
parts
SMALL INDUSTRY CLUSTER
DEVELOPMENT PROGRAMME (SSI-CDP)
• Ministry’s own programme
• Envisages comprehensive coverage of the whole
country
• Adopts a holistic approach
• Capable partner institutions welcome to join
•
Leveraging of funds aimed at
• Stakeholders’ contribution & participation
encouraged
ELEMENTS OF THE MINISTRY OF SSI’s
HOLISTIC APPROACH
• Focus on building overall competitiveness of the
clusters (rather than intervention on individual
themes like credit/technology / export promotion
• Intermediaries also covered: e.g. Business
Development Services providers, raw material
suppliers, machinery suppliers, selling agents
• Flexible : covering wide variety of themes,
actors/ideas as per cluster profile
• Dynamic : responsive to changing needs
STRENGTHS OF SSI-CDP
• Large Reservoir of Technical Manpower
• Valuable Experience of Hand Holding and
BDS Providing
• Network Spread All Over the Country
• Inputs from UNIDO CDP
• Close Co-ordination with
Stakeholders, State Govts.
and Other Developmental
Organisations
SSI-CDP : SELECTION OF CLUSTERS
• 21 clusters selected recently in
consultation with State Govts, Industry
Associations, etc
• Balanced coverage of sectors/products
and backward areas
• Based on rating of clusters on essential
parameters
PARAMETERS FOR SELECTION OF
CLUSTERS UNDER SSI-CDP
•
•
•
•
•
•
•
•
Distinct Technology & product
Potential for growth
Contribution to employment
Local leadership & support
Basic infrastructure
Presence of capable institutions
Recommended by other agencies
Need for socio-environ interventions
SELECTION OF
CLUSTER DEVELOPMENT AGENTS
• Selected from large reservoir of experienced
technical manpower available within SIDO
• Assessment of personality done on the desirable
traits
• Ability to work diligently
• A flexible mindset
• Knowledge about the tools
• Experience in functional areas
• Exposure to other clusters
• Ability to be a follower
TRAINING OF
CLUSTER DEVELOPMENT AGENTS
• Training-cum-Resource Centre at NISIET
• In-house expertise being developed
• Other agencies running CDP may also benefit
from our training facility
• Includes field work for conduct of diagnostic
study & preparation of Action Plan
CLUSTER BASED CREDIT PLANNING:
THE LATEST INITIATIVE
• 60 SSI Clusters selected spread all over
India with regional balance
• Comprehensive Credit Planning
• Monitoring by SLBC
• Ministry of SSI and State Governments
involved for focused development
CLUSTER DEVELOPMENT
THE e-APPROACH
[www.smallindustryindia.com]
&
[www.laghu-udyog.com]
• Sub-sites to host:
– list of SSI and rural artisan Clusters in the country
– comprehensive information on Clusters in India
– Preliminary/Diagnostic Reports and detailed maps
– “e-Cluster News” to be hosted
– list of reading material
– hyperlinks to other international sites and events
on Clusters
• Expected to go on-line by the 1st week of Oct. 2003 at
Clusters.smallindustry.com
PROPOSED BILATERAL PROJECT
WITH GOVT OF ITALY
Mutual Credit
Guarantee
Cluster Twinning
Investment &
Technology
Promotion
• Pilot project launched on mutual credit
guarantee by CGTSI
PROJECT FOR DEVELOPMENT OF
DIESEL ENGINES AND ENGINEERING
INDUSTRY CLUSTER
• Objectives: Technology upgradation, improvement in
quality and productivity, developing data base on BDS
providers, networking and formation of consortia,
improved marketability
• Activities: diagnostic study, awareness seminars,
developing resource persons, enterprises upgradation
programmes, technological workshop, individual
counselling etc.
• Financial support: DC(SSI), ICICI, Industry Association
• Implementation: EDII, Ahmedabad
PROJECT ON PROMOTING ENERGY
EFFICIENCY IN HAND-TOOLS SSI SECTOR
• Contributing & implementing partners: Ministry of SSI,
UNIDO, SIDBI and Industry Associations
• Budget: US$ 7,50,000
• Aims at strengthening the competitiveness of energy
intensive and export oriented forging/hand-tools SSI
sector in India
• Strategy :
• Adoption and promotion of energy efficiency and clean
technologies, strengthening policy and institutional
structure, supporting capacity building, developing and
international marketing
• Jallandhar and Nagaur to be the key Clusters,
experiences to be disseminated to Tumkur cluster and
elsewhere
PROPOSED PROGRAMME FOR TECHNOLOGY
UPGRADATION AND GHG EMISSION ABATEMENT
IN FEROZABAD GLASS INDUSTRY CLUSTER
• Aims at strengthening technological and
manufacturing capacity through adaptation and
demonstration of energy efficient technologies for
– reduction of Green
House Gases Emission
– improvement in working
environment and health
of workers
– ensuring sustainability
in the context of
globalization
SECTION-III
EMERGING ISSUES
RAPID GROWTH IN THE NUMBER OF
AGENCIES WORKING FOR CLUSTER
DEVELOPMENT
Interventions in
162 clusters
12
10
8
11
6
4
2
2
0
1996
Now
HOLISTIC PERSPECTIVE IS NECESSARY
• Must cover hardware as well as software
• Units as well as groups of SSI’s need to be
vitalized
• Divergent themes (as per need of the
cluster) must be covered
STRENGTHENING
INDUSTRY ASSOCIATIONS
LISTING
RATING
ASSOCIATIONS
RECOGNITION
AWARDS
NEED FOR EXPERIENCE SHARING
• Mutual learning among implementing
agencies in India
• Learning from clusters outside the country
• Repository of experiences and observation
necessary at the national level
NEED FOR DOCUMENTATION OF
INFORMATION
• About clusters and status of socioeconomic environment within clusters
• Highly useful for programme
implementing agencies as well as BDS
providers
• A spin offs possible on credit technology,
quality, infrastructure etc.by customizing
services to the cluster need
• e-Management of information
BDS DEVELOPMENT
• Business Development Services (BDS)
providers need and deserve recognition,
support & linkages
• Include private BDS providers also