Presented By:

Salman Malik
Saima Nafis
Sourav Rai
Tasaduk Aziz
Yesha Aftab
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 History
 Since the early nineties, cluster based development of MSMEs has
been adopted in more than fifty countries.
 It was conceptualized to contribute towards development of MSMEs
and thus enhance their competitiveness, generate sustainable
employment and alleviate poverty.
 It was formed after the suggestion of the Ministry of Small Scale
Industries, Government of India, the United Nations Industrial
Development Organisation (UNIDO) conceptualized and initiated the
process of MSME.
 the Foundation was legally constituted as a non-government, non-
profit registered trust under the auspices of the Entrepreneurship
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Development Institute of India (EDI), Ahmadabad, in the year 2005.
 Few Fact s
 The modified government procurement policy for MSMEs including 20
percent quota for SC/ST category, is likely to reach the union cabinet on
Monday, a senior central government official said in the national capital.
 As per the modified cabinet nod there should a provision of aspiration 20
percent government procurement for MSMEs for first three years. And 20
percent of this 20 percent should be for SC/ ST categories.
 T K A Nair, had proposed a compulsory procurement policy for MSMEs to
help them improve their bottom lines and broadly encourage micro and small
businesses in the country.
 As per available statistics (4th Census of MSME Sector), this sector employs an
estimated 59.7 million persons spread over 26.1 million enterprises. It is
estimated that in terms of value, MSME sector accounts for about 45% of the
manufacturing output and around 40% of the total export of the country. 3
 Classification
 In India, the enterprises have been classified broadly into two categories
 Manufacturing ; and
 Those engaged in providing /rendering of services.

 Both categories have been further classified into micro, small and
medium enterprises based on their investment in plant and machinery or
on equipment. The present ceiling of investment to be classified as
micro, small or medium enterprises is as under :

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 Mission n Vision
• Vision
• An-economically progressive, socially connected,

environmentally sustainable and spiritually rooted world

composed of interconnected yet diverse local socio-economic systems.

• Mission
• To assist institutions undertake effective and inclusive

cluster based local area development in developing and

transition economies.

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 Clusters in India
 A cluster is a sector targeted geographical concentration of micro
and/ or small & medium enterprises (MSMEs/MSMEs).
 The location of such enterprises can span over a few villages, a town
or a city and its surrounding areas
 It is identified by the ‘product/service’ that the micro and small
enterprises produce and the ‘place’ where the enterprises are located.
Foundation for MSME Clusters assists institutions in undertaking
cluster based local area development, effectively and inclusively in
developing and transition economies.
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 objectives
 Cluster initiatives become inclusive.
 Cutting edge methodologies, tools, information and resources with respect
to a cluster development program are accessible.
 Effective linkages emerge between clusters and important thematic
institutions in the area of finance, infrastructure, environment, investment,
RD, social responsibility and local governance.
 Trained and competent professionals and institutions are available to
facilitate cluster-based development.

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 Board of Trustees
 The Foundation for MSME Clusters is steered by a Board
of Trustees at the apex level, chaired by Professor Y.K. Alagh,
former Vice-Chancellor of the Jawaharlal Nehru University.
 The Board comprises of
1. Dr. Dinesh Awasthi, Director, Entrepreneurship Development Institute
of India (EDI),
2. Shri Anupam Das Gupta, Member of National Consumer Disputes
Redressal Commission,
3. Shri Brij Mohan, Former Executive Director of The Small Industries
Development Bank of India (SIDBI)
4. Mr. Nitin Desai, Professor ICRIER, Former Under Secretary General,
United Nation

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 Services

 Policy research and designing of cluster development initiative

 Mapping clusters in regions and countries.

 Training and institutional capacity building.

 Monitoring , evaluation and impact assessment of cluster initiatives.

 Action research in cluster development.

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 Features
 Give rise to collective benefits
 Favour the creation of providers of specialised services.
 create a conducive environment for the development of inter-firm co-
operation as well as of co-operation among public and private
institutions to promote local production, innovation and collective
learning.
 Win-Win situation for businesses and Governments
 An idea about how inadequate access to information can adversely
affect an enterprise can be had from the experience of India

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 Schemes
1.Guidelines of the Scheme for International Cooperation
2.Scheme of Surveys, Studies and Policy Research
3.Scheme of Surveys, Studies and Policy Research - List of Agenci
es as on 26.08.2010
4.Surveys/Studies conducted under the Surveys, Studies and Policy
Research Scheme
5.Guidelines of Scheme for Assistance to Training Institutions (
 English/ Hindi)
6.Scheme of Fund for Regeneration of Traditional Industries (SFU
RTI)
7.Rajiv Gandhi Udyami Mitra Yojana (RGUMY)
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Thank You

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