The Ministry of Micro Small and Medium Enterprises has significantly expanded cluster based development initiatives across the country, completing hundreds of projects aimed at improving productivity, infrastructure and competitiveness of micro and small enterprises.
According to information provided in the Lok Sabha on March 12 by Shobha Karandlaje, Minister of State for Micro Small and Medium Enterprises, the Micro and Small Enterprises Cluster Development Programme has approved 606 projects since its inception. Out of these, 364 projects have been completed while 242 projects are currently under implementation.
The scheme supports the establishment of Common Facility Centres and infrastructure development projects to enhance productivity, strengthen competitiveness and provide shared facilities for enterprises operating within industrial clusters.
The Common Facility Centres supported under the programme include a range of technology driven and skill development infrastructure.
Key facilities supported under Common Facility Centres
• Industry 4.0 learning facilities and additive manufacturing infrastructure
• Digital infrastructure for cluster based enterprises
• Design and incubation centres
• Training and skill upgradation facilities
• Research and development centres
• Common renewable energy generation such as solar wind and bio energy systems
• Energy management equipment
• Common facilities for greenfield clusters aimed at holistic development of MSMEs
The programme operates as a demand driven central sector scheme, under which state governments submit proposals based on the common needs of existing clusters in their respective states and union territories.
Alongside industrial cluster development, the Scheme of Fund for Regeneration of Traditional Industries has played an important role in strengthening traditional industries and supporting rural livelihoods.
Since the financial year 2015 to 2016, a total of 513 clusters have been approved across the country under the scheme with committed government assistance of 1,332.95 crore rupees.
These clusters are expected to benefit around 3.03 lakh traditional artisans working in sectors such as handicrafts, handloom, agro processing, coir production, honey processing and related activities.
Out of the approved clusters, 378 clusters are currently operational while 135 clusters are under different stages of implementation. These clusters are contributing to infrastructure development, skill enhancement, value addition and improved market linkages for artisans at the grassroots level.
The ministry also highlighted that India’s industrial landscape has witnessed rapid digitalisation in recent years, helping micro and small enterprises improve operational efficiency and competitiveness.
There has been increasing adoption of digital payments, e commerce platforms, internet of things enabled production tools and artificial intelligence based technologies among MSMEs.
To support this transition, the government has launched several initiatives aimed at promoting digital empowerment and technology adoption in the sector.
These include digital platforms developed by the Ministry of Electronics and Information Technology such as DigiLocker and the IndiaAI Datasets Platform, which help enterprises leverage digital technologies to improve efficiency and competitiveness.
Connectivity initiatives led by the Department of Telecommunications, including BharatNet and PM WANI, are also supporting affordable internet access and last mile digital connectivity.
The Ministry of Micro Small and Medium Enterprises is supporting digital transformation through multiple programmes such as digital registration under Udyam, technology training through Tool Rooms and Technology Centres, incubation of new ideas under the MSME Innovative scheme and financial support for green technologies under the MSE Green Investment for Financing Transformation scheme.
Financial incentives, capacity building initiatives and awareness programmes have been integrated into these schemes to help enterprises adopt emerging technologies and strengthen sustainable business practices.
In addition, the ministry has launched the Trade Enablement and Marketing scheme to help micro and small enterprises join the Open Network for Digital Commerce.
The scheme provides financial assistance to seller network participants for onboarding enterprises, cataloguing products, account management, logistics support, packaging materials and design services.
The initiative is designed to expand market access for MSMEs through digital commerce platforms, with half of the beneficiaries expected to be women owned enterprises.
The ministry said these cluster development, digital empowerment and market access initiatives are aimed at strengthening the MSME ecosystem, enhancing productivity and promoting inclusive economic growth across the country.
