The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. A cluster is a group of enterprises located within an identifiable and as far as practicable, contiguous area and producing same/similar products/services. The essential characteristics of enterprises in a cluster are (a) Similarity or complementarity in the methods of production, quality control and testing, energy consumption, pollution control, etc (b) Similar level of technology and marketing strategies/practices (c) Channels for communication among the members of the cluster (d) Common challenges and opportunities.
Objectives of the Scheme
v To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills and quality, market access, access to capital, etc
v To build capacity of MSEs for common supportive action through formation of self help groups, consortia, upgradation of associations, etc.
v To create/upgrade infrastructural facilities in the new/existing industrial areas/ clusters of MSEs.
v To set up common facility centres (for testing, training centre, raw material depot, effluent treatment, complementing production processes,etc).