Cluster Interventions: The Competitiveness Reforms for Sustainable Development of MSEs in India.
Published: 2011
Author(s) Name: Rajesh R. Jaware, V. P. Wani and M.K Pandey
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Abstract
India is gearing up to raise output of MSE
sector significantly by introducing various
development programmes to derive clear competitive
advantages. One of the peculiar characteristics of
this sector is the existence of clusters for decades
and centuries. The formidable challenges created for
the MSME sector after the liberalisation has
generated a great deal of interest on novel
approaches to development. In this endevour,
UNIDO in 1996 initiated a Cluster Development
Programme (CDP) in collaboration with MSME
Development Organisation to intervene in the
process of promoting MSE networking and to
improve the competitiveness of clusters. The
objective of this paper is to study the genesis of
cluster interventions and developmental changes
occurred in the MSEs through CDPs. For this
purpose, author studied four clusters under the CDP
programme to measure the total factor productivity
change. The paper concludes with benefits of CDPs
on MSMEs in many aspects.
Keywords: MSME, MSE, Cluster Interventions,
Cluster Development Program (CDP), Special
Purpose Vehicle (SPV), Common Facility Centre
(CFC).
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