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Economy Engagement / Initiatives

Cluster Development

Cluster Development is one of EDII’s niche areas. The Institute is engaged in revitalization of industrial and artisanal clusters. The Institute implements cluster development model with the objective of stimulating dormant clusters by intervening in the areas of production, technology, marketing, skill development, export promotion, design development, improving access to finance etc. In order to impart sustainability to the effort, EDII also exposes the clusters under intervention to international markets, processes and experiences.

In the past, EDII has undertaken the following activities to strengthen clusters. Around this time, UNIDO came out with its 3-phase training model to develop Cluster Development Agents.  The Institute in collaboration with UNIDO carried out a number of Cluster Development Agents that later rechristen as Cluster Development Executives (CDEs) and created a cadre of executives’ to address the issues that affect the growth of different clusters in the country.

  • Selection of a cluster
  • Diagnostic study
  • Developing Cluster Vision
  • Developing a comprehensive Strategy
  • Action Plan
  • Implementation of Action Plan
  • Monitoring & Evaluation
  • Capacity Building of Business Management Organizations
  • Developing the Exit Strategy

Core Activities

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Cluster Development

Cluster Development Programme (CDP) has become one of the most effective instruments to ensure survival and growth of existing micro, small and medium enterprises (MSMEs). Experience shows that successfulimplementation of the Cluster Development Programme (CDP) could help MSMEs to improve their business performance, adopt appropriate technology, improve quality and productivity, increase turnover and export, and improve HR and overall management efficiency. Joint initiatives nurtured under CDP could help the cluster firms go for value addition, product customization, brand building, and improvement of marketing and export performance. This would ensure their holistic development and contribute towards Local Economic Development (LED). These efforts are needed to enhance competitiveness of the cluster MSMEs and make them stand tall in the globalized economy.

Projects in MSME Clusters

Project TitleName of ClusterSponsoring Agency
MSME Cluster Intervention Programme (M-CIP)Engineering Cluster, RajkotSmall Industries Development Bank of India (SIDBI).
MSME Cluster Intervention Programme (M-CIP)Bamboo Cluster, AgartalaSmall Industries Development Bank of India (SIDBI).
Diagnostic Study ReportAgarbatti Cluster at North Ganganagar, Dharmanagar, TripuraOffice of DCMSME, Ministry of MSME, Government of India
Developing Steel re-rolling Mill ClusterSteel re-rolling Mill Cluster at Bhavnagar,GujaratIndustries Commissionerate, Govt. of Gujarat
Developing Engineering ClusterEngineering Cluster at Bilimora, GujaratIndustries Commissionerate, Govt. of Gujarat
Developing Hume Pipe Manufacturing ClusterHume Pipe Manufacturing Cluster at Bodeli, GujaratIndustries Commissionerate, Govt. of Gujarat
Developing Rice Mill ClusterRice Mill Cluster at Tarapur, GujaratIndustries Commissionerate, Govt. of Gujarat
Diagnostic Study ReportJewellery Cluster & Pottery Cluster at GorakhpurOffice of DCMSME, Ministry of MSME, Government of India
Soft Intervention under MSE-CDPTribal Garments Cluster at Khonglong, Senapati, ManipurOffice of DCMSME, Ministry of MSME, Government of India
Soft Intervention under MSE-CDPGeneral Engineering Cluster at Thalassery, Kannur, KeralaOffice of DCMSME, Ministry of MSME, Government of India
Soft Intervention under MSE-CDPBamboo made Handicrafts Products Cluster at Shankhala, West TripuraOffice of DCMSME, Ministry of MSME, Government of India
Soft Intervention under MSE-CDPLeather Products Cluster at Topsia, KolkataOffice of DCMSME, Ministry of MSME, Government of India
Soft Intervention in Casting & Forging ClusterCasting & Forging Cluster at Vadodara, GujaratIndustries Commissionerate, Govt. of Gujarat
Soft Interventions in Gold Jewellery Manufacturing ClusterGold Jewellery Manufacturing Cluster at Rajkot, GujaratIndustries Commissionerate, Govt. of Gujarat
Soft Interventions in Pharmaceutical Machinery ClusterPharmaceutical Machinery Cluster at Ahmedabad, GujaratIndustries Commissionerate, Govt. of Gujarat
Implementing BDS in MSME ClustersLeather clusters at Kolkata, Santiniketan, Chennai & Dyes & Chemical cluster at AhmedabadDepartment for International Development (DFID), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), The World Bank & Small Industries Development Bank of India (SIDBI).
Induce the Dynamism in Engineering ClusterEngineering Cluster at Vadodara, GujaratIndustries Commissionerate, Govt. of Gujarat
Facilitating Survival & Growth of Existing Enterprises in the Textile Accessories & Machinery ClusterTextile Accessories & Machinery Cluster at Ahmedabad, Surat & Surendranagar, GujaratIndustries Commissionerate, Govt. of Gujarat
Benchmark Study in 7 Clusters in Kerala, IndiaGarment Cluster at Alappuzha, Garment Cluster at Ernakulam, Garment Cluster at Malappuram, Home Furnishing Cluster at Ernakulam, Wood cluster at Kannur, Soft Toys Cluster at Kottayam, Wood Cluster at MalappuramKerala Bureau of Industrial Promotion, Govt. of Kerala, India
Regional Baseline and SME Development & Survey of Regional Clusters/Value Chains and BDS ProvidersReadymade Garments, Pharmaceutical, Auto-Component, Leather Toys, & Powerloom Cluster in Indore RegionDeutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
Cluster Development Programme for Automobile Components ClusterAutomobile Components Cluster at Jalandhar, Ludhiana & Phagwara, PunjabDevelopment Commissionerate, Small Scale Industries, Govt. of India
International Centre for Cluster Competitiveness, Growth and Technology – Strategic and technical support to agencies involved in MSME cluster developmentLeather at Santiniketan, Readymade Garment at Indore, Gold Jewellery at Thrissur, Food Processing at Muzzafurpur, Bearing at Jaipur, Light Engineering at Solan, Agricultural Implements at Karnal and Moga.Office of Development Commissioner (MSME)
Dynamics of growth and stagnation of industrial cluster in India: Emerging issues and policy imperativesHand tools cluster, Nagaur (Rajasthan), Jalandhar & Ludhiana (Punjab)Ministry of MSME, Govt. of India
Cluster Development Programme for Engineering ClusterEngineering Cluster at Rajkot, GujaratDevelopment Commissionerate, Small Scale Industries, Govt. of India
Cluster Development Programme for Brass Parts ClusterBrass Parts Cluster at Jamnagar , GujaratIndustries Commissionerate, Govt. of Gujarat

Projects in Handloom, Handicrafts, Coir and Khadi and Village Industry (KVI) Clusters

Sr. No.DescriptionName of the Clusters
1National Resource Agency (NRA) – Office of DC – HandloomsBurdwan (West Bengal), Varanasi (Uttar Pradesh), Sonepur (Orissa), Chirala (Andhra Pradesh), Chanderi / Gwalior (Madhya Pradesh), Bhagalpur (Bihar), Trivandrum (Kerala) Madhavaram, (Andhra Pradesh), Bijoynagar (Assam), Kullu (Himachal Pradesh) , Bijnore (Uttar Pradesh), Nadia (West Bengal) Trichy (Tamil Nadu), Imphal (Manipur), Gadag (Karnataka), Kurinjipadi (Tamil Nadu) Bargarh (Orissa), Mubarakpur (Uttar Pradesh) Tiruvanamalai (Tamil Madu), Barabanki (Uttar Pradesh)
2Implementing Agency (IA) & Implementing Agency for Consolidation Phase from 2012 to 2015Sonepur (Orissa), Varansi (Uttar Pradesh) and Chanderi – Gwalior (Madhya Pradesh)
3Technical Agency KVIC (SFURTI)Khadi Industries: Sultanpur, Haldwani, Raibarely, Gorakhpur, Sitapur, Nanded, Surendranagar Village Industries: Raigarh- Bell Metal, Sambhal – Muradabad- Horn & Born, Sindhudurg- Food Processing, Valsad – Neera; Coir Industries: Morjim [Goa], Mahuva – Gujarat, Kollam – Mangadu, Bepur – Kozhikode, Kottayam – Vaikom, Trivandrum – Chirayankeezhil, Lakshwadeep – Androth, Goa – Morjim;
4EDI acts as a Cluster Management & Technical Agency (CMTA)Sivasagar, Assam [Mega Cluster: Handlooms]
5EDI acts as a Cluster Management & Technical Agency (CMTA)Srinagar – J & K [Mega Carpet Cluster – J & K]
6Technical Agency – Revamped SFURTIPapad Cluster – Udaipur Rajasthan;Amla Processing – Pratapgarh, Uttar Pradesh; Pickle Cluster:Nalanda, Bihar;
7Technical Agency – Revamped SFURTIBlacksmithy & Agri Tools cluster – Bardoli, Gujarat Hand Knotted Carpet Cluster- Allahabad, Uttar Pradesh Croshia Cluster, Deoria; Pottery Cluster, Ghosi Mau; Hand Embroidery and zardozi cluster, Mau; Durry Cluster Mirzapur
8Technical Agency Coir Board- Revamped SFURTICoir Industries : Trivandrum, Haripad, Balussery – Kerala; Banaskantha-Gujarat
9Cluster Resource and Management Agency [CRMA] – HANDLOOMS158 Clusters – 10 states

Other Projects

  • Set up Centre for Cluster Competitiveness, Growth & Technology (C3GT) with the support of DC(MSME) and provided training and technical support to 12 MSME-DIs in different States for successful implementation of cluster development programme.

  • As an implementing agency, successfully implemented Cluster Development Programmes in MSME clusters in different States with the support of DC(MSME).

  • Conducted capacity building programmes for MSME Business Membership Organisations (BMOs) with the support of Sequa, GIZ, SIDBI and Ministry of MSME.

  • Worked as a National Resource Agency (NRA) for cluster development under the aegis of the Ministry of Textile, Govt. of India

  • Worked as a National Technical Agency (NTA)- under Scheme of Fund for Regeneration of Traditional Industries (SFURTI) of KVIC & Coir Board.

  • Worked as a Cluster Management and Technical Agency (CMTA) for handling Mega Clusters in Shivsagar, Assam and Srinagar, J&K.
  • Worked as a Cluster Resource and Management Agency (CRMA) to support handloom cluster development and monitoring in 158 clusters spread across 10 States.

  • Trained more than 700 Officials under Cluster Development Executives (CDE) Programme -Officials from MSME-DI, DIC, NABARD, Textile Committee, KVIC, Coir Board etc. were trained by us.

  • Trained Industry Dept. Officials–Govt. of Gujarat, Govt. of Rajasthan, Govt. of Kerala on Cluster Development.

  • Trained more than 160 Govt. Officials from 80 countries under International CDE Programme supported by the Ministry of External Affairs (MEA), Government of India.

  • Implemented cluster development programmes, business development services (BDS) market development projects in several MSME clusters with the support of DC(MSME), DC(Handloom), DC(Handicrafts), KVIC, Coir Board, SIDBI, Govt. of Gujarat, World Bank, DFID, GIZ, UNDP etc.

  • Conducted research on clusters, business development services and value chain with the support of the Ministry of MSME, SIDBI, GIZ.

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