The Hindu Business Line : FICCI moots measures to develop SME clusters

New Delhi June 25 FICCI has urged financial institutions to increase the profiling and risk assessment of SMEs to reach out to a higher number of enterprises.

This follows the viability in financing the existing cluster development programmes for SMEs, the chamber said.

The chamber has also suggested that the Government make low-cost funds available to the SMEs to modernise clusters.

Technology and quality upgradation, linkages between Indian and overseas SME clusters and networking support for gaining access to new markets would enable the cluster development programme to spread out and become more effective.

FICCI has also suggested that providing information to SMEs on new products and technologies and extending institutional support for training and skill development would make clusters move up the value chain.

Citing the collaboration among Indian clusters with foreign SME clusters, such as Ferozabad glass industry cluster with Murano in Italy, mint industry/attar in Uttar Pradesh with Grasse in France, the association has recommended expanding of such programmes.

Further, to help the clusters meet international standards and compete in the domestic market, it has called for involvement of private players in these programmes.

Cluster-specific in-depth study, identifying the technology gaps and consultancy programmes by private sector, would boost the competitiveness of the SMEs, the FICCI said.

With reference to East Asian countries that have leveraged trans-national production network and Government support for production, procurement, R&D and design support, it said that increasing participation of Indian SMEs in domestic and international trade fairs could be another step towards a strong cluster development programme.

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