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United Nations Industrial Development Organization (UNIDO) Programmes

The aim of the UNIDO Cluster Development Program in India is to contribute to the overall performance and collective efficiency of the small and medium enterprise clusters for sustainable development by assisting selected local communities of firms and associated institutions in the cluster. This entails the implementation of cluster support initiatives in selected pilot clusters as well as assistance to a national program of small enterprise cluster modernisation and restructuring. UNIDO considers network development, network creation and local governance issues as central to its initiative of cluster development. In fact, it consciously avoids funding individual firms. 

When UNIDO started its interventions on clusters in India in January 1997, it was felt necessary to have a reliable database on Indian clusters and concerted action at policy level by the Central and State Governments to foster SSI development through a cluster approach. Two programmes were ongoing at the time; one by State Bank of India (since 1988) and the other by India's Small Industries Development Bank  (since 1991). The UPTECH scheme of the Ministry of SSI was launched in 1998. These programmes focused primarily on technology upgradation and targeted individual firms.

Under the framework of the UNIDO Cluster Development Programme (UNIDO CDP) in India, the first comprehensive database on Indian clusters was prepared. Seminars / workshops were held for policy makers, exposing them to Indian and Italian clusters. In addition, UNIDO generated awareness and ensured capacity-building programmes for SIDBI and the State Governments of Andhra Pradesh, Madhya Pradesh, Karnataka, Rajasthan, West Bengal, Tamil Nadu and Gujarat.

As an outcome of its work in the initial years, a major initiative of the UNIDO CDP Focal Point in the fourth year was the design and implementation of an innovative training programme in conjunction with the Entrepreneurship Development Institute of India, Ahmedabad, for field-level professionals of development agencies and government officials as Cluster Development Agents (CDAs). This programme was the result of the project direct interventions in seven clusters as well as extensive interactions at policy level with different development partners concerned with SSI cluster development.

Another substantial initiative has been a customised training programme for the executives of the Industry Associations or the Network Development Agents (NDAs) with the objective of strengthening the working of the associations for the development of the clusters.

UNIDO is also supporting the Ministry of Industry in a number of sectoral development programmes. These include the National Programmes for the development of toy, stone, lock and machine tool industries respectively. The consolidated project for SME development through establishment of Mutual Credit Guarantee Scheme, Cluster Twinning, Foreign Investment and Technology Promotion is currently undergoing final stages of approval. The project on promoting energy efficiency in small scale hand tools sector has been successfully completed and a similar programme in ceramics is being implemented.

Source: www.unido.org

 
 
 
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