Cluster development programme in Kerala

Small enterprise sector has emerged as a vibrant sector in the Indian economy. the micro, small and medium enterprise sector constitute over 90 per cent of total industrial units, account for around 80 per cent of total industrial employment and contribute nearly 39 percent of industrial production and around 33 percent of country’s export. Further, in recent years the micro and small enterprise sector has consistently registered a higher growth rate compared to the overall industrial sector.

The cluster development programme is an important programme which helps a common development of the micro, small and medium enterprises clusters which are the group of similarly functioned MSMEs formed as cluster for the common benefit. The major benefits of the scheme are Technology Upgradation, Quality Upgradation and Certification, Credit Facilitation, Marketing Support, including exposure to the global markets and Collective Capacity Building of the cluster units with a view to enabling them to ultimately operate as collectives of their own.

The present study focused on the Soft Interventions of cluster development programme.

The study was conducted by taking one cluster from Patthanamthitta district. There are altogether 22 enterprises in that cluster. From among five adequately working enterprises, two were selected as a sample for the study and necessary data were collected from the entrepreneurs through questionnaire. Proper co-ordination and participation of cluster members is essential for smooth working of clusters. And the Training programmes should be more focused on technological up gradation. More financial support as well as support through public distribution channel is needed from the part of Government for marketing of the product and there should be more export assistance for export oriented clusters.