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MSME Clusters
Scaling up Sustainable Development of MSME Clusters in India

The Challenge

The Indian economy owes a major part of its growth to the 26 million Micro, Small and Medium Enterprises (MSMEs) that provide employment to an estimated 60 million people. 70% of these MSMEs are estimated to be concentrated in around 1100 industrial and 3500 artisanal clusters. A sector mapping (2010) of industrial clusters, identified the foundry sector, having 5500 units in 47 clusters, as an environmentally challenging and highly energy intensive industry. 90% of India’s foundry enterprises are micro and small enterprises, which use obsolete and inefficient melting technologies. Despite several initiatives undertaken to address the problems; these initiatives have not been able to reach out to more than 200 enterprises.

The Objectives

The project enabled the adoption of sustainable environment and social business practices across selected foundry MSME clusters. It aimed at scaling up the capacity of business membership organisation, and seeks to introduce aggregate reporting. Furthermore, the project aimed at establishing financial linkages and supports a conducive policy environment.

The Way Forward

  • Fostered sustainable production through technical and nontechnical measures;
  • Built capacities of Business Membership Organisations (BMOs) for SCP;
  • Introduced and facilitated Aggregate Sustainability Reporting among Cluster MSMEs;
  • Enhanced access of MSMEs to credit through stronger linkages with Financial Institutions;
  • Undertook policy advocacy and dissemination.
Duration:
5/2012 – 10/2015
Total Budget:
€ 2,070,491 (EU contribution: 80%)
Contact Detail:

 

Dr. Tamal Sarkar

[email protected]

USO House, USO Road

Off Shaheed Jeet Singh Marg

New Delhi – 110067

India

Lead Partners

Foundation for MSME Clusters (FMC)

Foundation for MSME Clusters (FMC)

Partners

Global Reporting Initiative (GRI)

Global Reporting Initiative (GRI)

Indian Institute of Corporate Affairs (IICA)

Indian Institute of Corporate Affairs (IICA)

United Nations Industrial Development Organization (UNIDO)

United Nations Industrial Development Organization (UNIDO)