Cluster Approach to better holistic development of MSMEs


Ministry of Micro, Small & Medium Enterprises (MSMEs) has issued a press release on adoption of cluster approach in MSMEs. This release was issued on 27th March, 2023.

The Ministry is implementing Micro and Small Enterprises – Cluster Development Programme (MSE-CDP) across the country. The objective of the scheme is to enhance the productivity and competitiveness of Micro and Small Enterprises (MSEs). The scheme adopts cluster approach to promote the holistic development of the MSMEs.

Moreover, the cluster approach envisages financial assistance in the form of the Government of India (GoI) grant for establishment of Common Facility Centers (CFCs) in the existing clusters. It also contemplates the establishment of new / up-gradation of existing Industrial Areas / Estates / Flatted Factory Complexes.

Ministry of MSME also implements the Scheme of Funds for Regeneration of Traditional Industries (SFURTI) for making Traditional Industries more productive and competitive by organizing the Traditional Industries and artisans into clusters to provide support for their long-term sustainability and economies of scale.

MSE-CDP is a demand driven Central Sector Scheme, wherein, State Government sends proposals for establishment of Common Facility Centers (CFCs) and establishment /up-gradation of Infrastructure Development (ID) projects as per requirements in clusters.

The several steps in processing the application have been simplified to expedite the approval as well as functioning of projects under MSE-CDP as per the new guidelines. 

Under SFURTI, timeline for implementation of SFURTI clusters were 3 years which has been reduced to 12-18 months w.e.f. March, 2020.

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