An emerging new economic order coupled with unbounded trade limits, imbalances in the technological advancement among the nations and aggressive market strategy all contribute to the serious challenges experienced by small and medium entrepreneurs particularly the small-scale sector. On this background, cluster development attracts much importance.
This cluster approach targets for cost effective production strategy, saving in raw material procurement by following mass purchase policies, technology innovations, product diversification, exploration of new markets, establishments of common facility centre, etc.
Cluster approach has been quite successful in the National and International field for developing small-scale industries. Cluster development, is therefore reducing SMEs isolation by strengthening linkages among all actors of the cluster (SMEs, Larger enterprises, supporting institutions) assisted in order to co-ordinate their actions and pool their resources for a common development goal.
MSME Development Institute, Bangalore has started cluster development activities for groups of small-scale industries by providing technical and market oriented support for homogeneous groups.
There are few clusters of Karnataka, which have been approved by the Development Commissioner, MSME, Govt. of India for their development i.e. Foundry cluster at Belgaum, Ready made garment at Bangalore, Leather footwear at Mysore, Agarbatti at Bangalore,Lacquerware Wooden Toy Cluster at Channapatna. UNIDO had also done work for the development of clusters like Jeans cluster at Bellary, and Machine tools at Bangalore. Other clusters which are existing in the state of Karnataka and can be taken up for development are silk industries, leather products, Coir and coir products, Electronics, Ready Made Industries, screen printing, Power loom, Cotton Handloom, Rice mill etc.
Developing cluster and working for a common goal in a consortium would benefit the industries and strengthen the marketing position of its products.
For more information contact:
Assistant Director (Cluster Development)
MSME Development Institute,
Government of India,
Ministry of Micro, Small & Medium Enterprises,
Rajajinagar Industrial Estate, Bangalore-560010.