Cluster Development Programme – an Empirical Study of Karnataka

Small Scale Industires

Cluster is the group of (SME’s) Small and Medium Enterprises which are involved in the production of same or similar types of product/services, who have got common opportunities and threats in a particular geographical area, or SME units which are involved in the same type of business activity, as per the report of Karnataka Government we have 4,46,811 SME units operating in Karnataka, which employs around 26 Lakhs employees, with an investment of Rs. 14,99,561.47 Lakhs. So it means that, virtually we have got a huge amount of cluster of SME units. Now the question is are they working together? The answer in most of the cases is No, means apart from cooperating with each other; the SME’s are competing with each other. Because of this SME’s face problems like poor access to financial facilities, outdated technology, improper marketing of products, unskilled labour, operational inflexibility and harassment by inspecting officials, this in turn leads to sickness. The present study is intended to study about the Cluster Development Programme, which is sponsored by the Government of Karnataka as well as various sister units of Central Government. Government proving financial support up to 90% of the projects total cost, various institutions like UNIDO, DC(MSME), DC(Handicraft), DC(Handlooms), State Bank of India, Ministry of MSME/KVIC, NIESBUD, Noida, Central Bee Research & Training Institute, Pune NIMSME are institutions which are working towards the growth and development of clusters in Karnataka as well as all over the India. The study makes an attempt to know the registered clusters in the state of Karnataka, and the institutions which are supporting for the development of the same.

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