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New Delhi: Apex industry body the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has proposed to partner Uttarakhand government to set up 13 new clusters in the state each accommodating about 1,000 units and providing direct and indirect employment to over four lakh people.
“The total funds required to provide basic and essential infrastructure to these clusters is estimated around Rs 500 crore. Once functional, it will contribute additional ten per cent revenues per annum to the exchequer, help in inclusive growth and simultaneously lead to upgradation of existing clusters,” said Dr Lalit Khaitan, chairman of the chamber’s Northern Regional Development Council while jointly releasing ASSOCHAM study titled Cluster Development Fuels Inclusive Growth In Uttarakhand along with secretary general Mr D.S. Rawat.
In this context, the chamber has addressed need for setting up a statutory body as a cluster development authority for optimum utilization of funds and to assist them in gearing up for further growth.
A meagre four clusters recognized by the central government operate in the state as against the total numbers of 6,500 clusters out of which 450 are assisted by the government. The MSME sector contributes significantly as it accounts for over 45 per cent of manufacturing output and 40 per cent of India’s net exports. Besides, the sector also contributes around 40 per cent to GDP with an estimated value of goods and services around Rs 20 lakh crore (year 2009-10). The clusters play major role in creation of jobs, cost competitiveness, better quality, enhanced productivity, improved infrastructure, wider export market and face overseas competition.
The sector is estimated to employ about 59 million people in over 26 million units throughout the country. Further, this sector has consistently registered a higher growth rate than the rest of the industrial sector. There are over 6,000 products ranging from traditional to high-tech items, which are being manufactured by the MSMEs in India. It is well known that the MSME sector provides the maximum opportunities for both self-employment and jobs after agriculture sector.
“Existing clusters are not able to sustain growth & development process due to use of obsolete technology, plant and machinery, thus, there is a need to interconnect all clusters among themselves by adopting e-Cluster Model to provide them with a level playing field and make it globally competitive,” says the chamber study.
Besides, e-Cluster model facilitates SME stakeholders for easy and speedy co-ordination between members, entrepreneurs, buyers-sellers and enables them to access vital information about marketing, best/profitable market price, market news and government notification. ASSOCHAM strongly holds a view for assisting and stimulating clusters’ potential to achieve better productivity and contribution in state output.
The 13 new clusters suggested by ASSOCHAM are: Almora (agro-based, handicrafts and food processing), Bageshwar (rice mills, herbal products), Chamoli (agro-based and food processing), Dehradun (dairy farms, garments, rice and wheat production), Haridwar (herbal products, dairy farms and floriculture), Nainital (horticulture, pickle and sauce industries), Pauri Garhwal (agro-based and food processing), Pithoragarh (fish farming, poultry farming), Rudra Prayag (agro-based, food processing and herbal products), Tehri Garhwal (dairy farms and floriculture), Udham Singh Nagar (agro-based and food processing), Rajakkad (rice mills), Uttarkashi (agro-based and food processing).
In a sample survey covering five clusters in five locations, it has been assessed that assisted clusters showed 20 to 30 per cent overall improvement in income generation, social welfare, product quality, efficiency in raw material consumption and skill improvements.
It may be noted that the government assistance to unassisted clusters could improve the contribution of the MSME sector to GDP and make available additional jobs. The gains of cluster development have not yet been fully appreciated and understood.
The study points out there is a huge demand of various set of skill development programs pan India including remote rural areas especially where the mass level of workforces are operating similar nature of works. In India there is no scarcity of work force but appropriate skilled work force is still a subject of worry.
There is a need for better promotion of available schemes and widespread dissemination of information at various levels about several schemes running across the country as a large portion of entrepreneurs are still not well informed. The number of such schemes be reduced to four or five comprehensive schemes to be accessible and implemental.
Public-Private Partnership (PPP) will bring value addition through synergies between public authorities and private sector companies more particularly through the integration and cross transfer of public and private sector skills, knowledge and expertise, cost effective delivery of projects, design and construction of infrastructure.
Since growth in cluster development aids growth in catchment area by way of increased demand of consumer goods and services, increase in earning per capita and spending on social infrastructure, says ASSOCHAM.
The state has tremendous potential for cluster development and regain investment destination in different segments of SME industry and acquire dual dimensional growth by increasing the size of clusters and recognition of more clusters by the government will bring inclusive and balanced growth and promote unique Cluster Branding of Uttarakhand.
Compiled by Mahara for his blog http://uttarakhandnews2k.blogspot.com/ for providing Government Jobs available in India.Some others blog of Mahara is http://sarkarinaukaricom.blogspot.com and http://enteranceexamresults.blogspot.com/
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