MSME Clusters

Scaling Up Sustainable Development of MSME Clusters in India

MSME Clusters map

The Indian economy owes a major part of its growth to the 26 million Micro, Small and Medium Enterprises (MSMEs) that provide employment to 60 million people, of which 70% are estimated to be concentrated in around 1086 urban industrial clusters. The foundry sector to be one of the less sustainable, highly energy intensive, environmentally polluting and socially negatively impacting.

The project enables the adoption of sustainable environment and social business practices across selected foundry MSME clusters; up-scales through capacity building of BMOs, introduces aggregate reporting, establishes financial linkages and supports a conducive policy environment. Thereby, it actively contributes to enhancing the competitiveness of less sustainable MSME clusters, while reducing their environmental and social impacts.

The project's target groups are: 500 MSMEs as direct beneficiaries and 460 as indirect beneficiaries in the target clusters About 10,000 contractual and permanent employees (2000 directly) in the target clustersLocal BMOs, BDSPs, fabricators, local public authorities, banks/FIs, national government institutions providing technical support and public funding in the 4 target clusters

The project's target areas are:

  • Batala and Jalandhar (Punjab),
  • Jaipur (Rajasthan)
  • Howrah (West Bengal)


Duration: 5/2012 - 4/2016

Total budget: EUR 2,070,491 (EU Contribution: 80%)


Tamal Sarkar
Foundation for MSME Clusters
USO House, 2nd Floor, USO Road, Off Shaheed Jeet Singh Marg
110067 New Delhi

Foundation for MSME Clusters (FMC) Foundation for MSME Clusters (FMC)
is the lead applicant of this project. FMC is responsible for the overall planning, co-ordination, implementation, monitoring & evaluation at the cluster level.
Indian Institute of Corporate Affairs (IICA) Indian Institute of Corporate Affairs (IICA)
established by the Ministry of Corporate Affairs, Government of India (MCA), is a think-tank for knowledge development/dissemination and for rendering policy advice to the Government of India on issues relating to Corporate affairs. IICA'
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
is involved in developing financial products that are relevant to and accessible by small businesses. In this project, GIZ introduces the concepts of Business Membership Organization (BMO) capacity building and share the methodology.
Global Reporting Initiative (GRI) Global Reporting Initiative (GRI)
has developed a continuous program, namely Global Action Network for Transparency in the Supply Chain (GANTSCh) Program, in which GRI partners with multinationals in order to build capacity within their supply chains in sustainability reporting. GRI's r
United Nations Industrial Development Organization (UNIDO) United Nations Industrial Development Organization (UNIDO)
is the specialized agency of the UN that promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability. UNIDO is responsible in providing technical inputs by making available relevant elements of cluster d
Small Industries Development Bank of India (SIDBI) Small Industries Development Bank of India (SIDBI)
is engaged in this project as an associate. SIDBI is responsible to introduce financial products and services available during the validation workshops.
MSME Clusters impact MSME Clusters impact

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Project Fact Sheet

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Financing sustainable production among MSME clusters

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Policy recommendations to promote sustainable development of MSMEs

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Training manual

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