Preview

Cluster Financing

Powerful Essays
Open Document
Open Document
2330 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Cluster Financing
CLUSTER FINANCING

Definition of Cluster in the Indian Context
Clusters can be defined as Sectoral and geographical concentration of enterprises, in particular Small and Medium Enterprises (SME), faced with common opportunities and threats which can:
a. Give rise to external economies (e.g. specialized suppliers of raw materials, components and machinery; sector specific skills etc.);
b. Favour the emergence of specialized technical, administrative and financial services;
c. Create a conducive ground for the development of inter-firm cooperation and specialization as well as of cooperation among public and private local institutions to promote local production, innovation and collective learning.

Importance of Clusters in the Indian Context
With a contribution of 40% to the country's industrial output and 35% to direct exports, the Small and Medium Industry (SME) sector has achieved significant milestones for the industrial development of India. Within this sector, an important role is played by the numerous clusters that have been in existence for decades and sometimes even for centuries. India has the richest diversity of clusters. The clusters are categorized as:
 Artisanal Clusters
 Industrial Clusters

The products covered by artisanal clusters include textile, handlooms, handicrafts, woodcrafts, metal and stone crafts, jewellery, leather, pottery & clay, etc. The industrial clusters include processed food, rice milling, readymade garments, terry towel, wet grinder, engineering, machine tools, handtools, foundry, brass parts, rubber and pharmaceuticals cluster.

There are more than 6500 industrial, artisan and micro enterprise clusters2. These clusters represent the socio economic heritage of India, where some towns or villages are known for a specific product for decades and centuries. It is estimated that these clusters contribute 60% of the manufactured exports from India. The clusters in India are estimated to have a significantly

You May Also Find These Documents Helpful

  • Powerful Essays

    The economic cluster referred to as Third Italy, was founded in the post-war period (1950s and 1960s) when the global economy was going through hard times of recovery. In the north-east part of Italy a new type of firms was developed. The question may be put why didn’t the other two important industrialized districts known as First Italy (the industrial heartland of the North) and the Second Italy (the backward South) have become the regions of wealth and economic growth. The answer lies primarily in the cultural values: the local culture of entrepreneurship and cooperation (Boschma, 1998) that to some extent doesn’t apply for other Italian regions. The following figure displays accurately the industrial zone of Italy:…

    • 2967 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Clusters in Business

    • 971 Words
    • 4 Pages

    Competitive advantage is not created within a single firm alone. Efficiency in internal operations is essential but not necessarily sufficient to compete globally. Factors external to the business are increasingly important. Each firm is inherently part of a "cluster" of activities made up of firms along the value chain as well as related and supporting organizations e.g. research and development, finance, worker skills, infrastructure. In general, clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, firms in related industries, and associated institutions in particular fields that compete but also cooperate. A cluster may include industries that share similar workforce, input, or infrastructure needs. In addition, a cluster may have more to do with the output of the "cluster" industries. Clusters may also be defined by complementary or interdependent industries: one may produce what another needs. It has been demonstrated throughout the world that strong clusters ensure sustainable competitive advantage and that this strength has managed to help countries improve drastically on their global competitiveness.…

    • 971 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Rmg Exports

    • 428 Words
    • 2 Pages

    and neighbor ing dist r icts in Jharkhand in addi t ion to 4 mega handloom clusters…

    • 428 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Sme Industry

    • 539 Words
    • 3 Pages

    Listen to this. The MSME sector contributes 8-10 percent of India’s GDP, at 41 million people the SME sector is the country’s largest employer. It also makes up over 45% of the total industrial output. With numbers like these, it is more than obvious that the SME sector in India is not only the engine of India’s growth story, but also with its deep integration with the manufacturing sector is driving industrial/,manufacturing output in the country.…

    • 539 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Leather Industry

    • 10884 Words
    • 44 Pages

    Objective of Study_______________________________________________4 1. Description of Cluster 6 1.1.1 Definition of Product 6 1.1.2 Geographical Location 6 1.1.3 Cluster History 6 1.1.4 Analysis of business operations of Principle firms 7 1.1.4.1 Preparation of Raw Material __________________________________________ 7 1.1.4.2 Production Operations 7 1.1.4.3 Quality Assurance 9 1.1.4.4 Sales/Marketing 9 1.1.5 Leather Goods Industry Overview _______________________________ ______10 1.1.5.1International ___________________________________________________________10 1.1.5.2.National ______________________________________________________________ 11 1.1.5.3.Sialkot Leather Industry __________________________________________________12 1.2. Core Cluster Actors. _____________________________________________________ 14 1.2.1.Manufactures ____________________________________________________________14 1.2.2 Makers _________________________________________________________________14 1.3. Other Cluster Actors.______________________________________________________ 14 1.3.1.Raw material Suppliers ____________________________________________________14 1.3.2.Machinery Suppliers ______________________________________________________14 1.3.3.Freight Service Providers __________________________________________________14 1.3.4 Vendors/Suppliers of Raw Material…

    • 10884 Words
    • 44 Pages
    Powerful Essays
  • Powerful Essays

    Economic Geography

    • 1469 Words
    • 6 Pages

    Think of cluster, we think about interconnected businesses working together in a region in a particular field. So being a part of cluster allows individuals or companies to operate more productivity and efficiency. Cluster is a typical place where receive so many support and investment from government and institutions about infrastructure in order to enhance companies ‘s productivity as well as the ability recruit employee with lower cost in training. Moreover, there are so many companies , institutions , specialized suppliers concentrate in the cluster so the employees have a good condition to develop and it opens up more opportunities for finding job so the cluster help attract best talent and produce specialized and experienced employees to reduce search and transaction cost in recruiting. On the other hand, each member can be easy to find and access specialized information which accumulated within the cluster so promote the flow of information and make information more transferable to facilitate technological and knowledge spillovers. The linkage between complementarities business such as hotels, restaurants, outlets and so on are more and more closed. The complementarities development signal opportunities for many employees, develop flowing services to gain more profits as well as create employment opportunities. The cluster also raise in marketing .It enhances reputation of a location in a particular field so it’s easy to attract customer, easy to meet their need when they want to do business. For example entertainment in Hollywood, finance on Wall Street, consumer electronics in Japan . Finally, clusters are often make it easier to compare performance among local rivalry so clusters play important role in competition to renew, reform and spark innovation and new business.…

    • 1469 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Semiconductor in Malaysia

    • 4347 Words
    • 43 Pages

    to consumer and industrial electronics. The list of projects reads like a Who’s Who of the…

    • 4347 Words
    • 43 Pages
    Powerful Essays
  • Powerful Essays

    Clusters

    • 5579 Words
    • 23 Pages

    In dit paper ga ik in op de clustertheorieën die binnen de economische geografie een steeds vooraanstaander plaats aan het innemen zijn. Hiervoor bespreek ik eerst de tegenstelling tussen mondialisering en lokalisering. Clusters benadrukken namelijk opnieuw het belang van het lokale, terwijl het belang van het mondiale lange tijd het dominante discourse vormde. Het is de overgang van het fordistische naar het postfordische productieprocess…

    • 5579 Words
    • 23 Pages
    Powerful Essays
  • Powerful Essays

    Lucknowi Chikankari Cluster

    • 19172 Words
    • 77 Pages

    Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 PARTICULARS Diagnostic Study Report/ Detail Project Report - Check List Summery Details of The Proposed Cluster Current Information Required for Cluster Selection Executive Summery Scope and methodology of Diagnostic Study Industry Scenario of Handicrafts in India Global Scenario of Handicrafts Embroidery Traditions in India Introduction of Chikankari Stitches of Chikankari Process of Chikankari Production Process Craft Map of India Map of the state of UP Map of the Lucknow District About Lucknow District Important features of the Cluster Key Milestone in performance of Chikankari Industry Support Environment Products of the cluster Value Chain Analysis Analysis of Business Operations in the cluster Assessment of Organisational…

    • 19172 Words
    • 77 Pages
    Powerful Essays
  • Good Essays

    Appendix 1: National SME Development Council Appendix 2: Classification of Economic Activities Across Sectors Based on MSIC 2000…

    • 2341 Words
    • 10 Pages
    Good Essays
  • Good Essays

    In India these type of industries are permuted to meet with the problem of excess population and unemployment so the government of India prate entrepreneur to step up small scale industries by aiding him by giving loans, land ,guidance etc .The strategy adopted by the government is:-…

    • 5472 Words
    • 29 Pages
    Good Essays
  • Powerful Essays

    References: Charantinath M Poornima, Entrepreneurship Development Small Business Enterprises: Pearson Education First Impression, 2006 Florence. P. Sargent , Investment, Location and Size of plant, London : Cambridge University Press, 1984 Government of India (Office of the Economic Adviser), Location of Industries in India, New Delhi, 1963 Lundy, James. L. Effective Industrial Management , New Delhi: Eurasia Publishing House, New Edition, 1984 Sreekantaradhya, B.S., Regional Dispersal of Industries, New Delhi; Deep and Deep, 1985 Weber, Alfred, Theory of Location of Industries, Chicago: The University of Chicago Press, 1929 Asian Productivity Organisation, Production Engineering , Manila: APO, 1981 Buffa Elwood S., Operations Management, New Delhi: Wiley Eastern, 1986 Kumar Anil, S.C. Purnima, Abrahim Mini K, K Jayashree, “Entrepreneurship development”: New Age International Private Limited Publisher, 2003 Read Ruddel R., Plant Layout – Factors, Principles and Techniques, Illinois: Richard D. Irwin, 1978 Gupta C.B. and Khanka S.S., Entrepreneurship and small business management: Sultan Chand and Sons 2003 Shubin John A. and H. Madeheim, Plant Layout, New Delhi: Prentice Hall of India, 1986 Gupta and Srinivasan, Entrepreneurial Development: Sultan Chand and Sons 1995…

    • 2044 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Being an agricultural country, Small and Medium size (SME) firms play a vital role for earning foreign exchange, employment, social uplifting and achieving welfare status for Pakistanis. According to Small and Medium Enterprise Development Authority (SMEDA) of Pakistan, SMEs constitute nearly 90% of all the enterprises in Pakistan; employ 80% of the non-agricultural labour force; and their share in the annual GDP is 40%.…

    • 466 Words
    • 2 Pages
    Good Essays
  • Good Essays

    In line with the above, there have been challenging debates all over the world on the role played by Small and Medium Enterprises (SMEs) towards economic development. Therefore, a vast literature on the growth and performance of SMEs has been developed over the years. Small and Medium Enterprises (SMEs) have had a privileged treatment in the development literature, particularly over the last two decades. Hardly any arguments are put forward against SMEs, even if development policies do not necessarily favour them and economic programs, voluntarily or not, often continue to result in large capital investment.…

    • 11970 Words
    • 48 Pages
    Good Essays
  • Satisfactory Essays

    Small scale industries (SSI) have a significant role in the Indian economy in view of its contribution to production, employment, and export. However, since 1991 small scale industries in India find themselves in an intensely competitive environment due to globalization, domestic economic liberalization, and dilution of sector specific protective measures. The formation of World Trade Organization in 1995 also forced the member countries (including India) to drastically scale down the restrictions on import. This article analyzes the various factors influencing the growth of small scale industries in India. Information Technology (IT) is one of the significant factors, which is, in general, not used by the small scale industries in India for their production and business process, in the growth of small scale industries in India. Further on the basis of Nolan's 'Stages of growth model' the stages of use of information technology in small scale industries are studied.…

    • 449 Words
    • 2 Pages
    Satisfactory Essays