MSME Cluster Outreach Programme

Why in News?

Key Points:

Union Finance Minister launched a national programme to promote financial access for micro, small and medium enterprises (MSMEs).
It is jointly organised by the Department of Financial Services (DFS), Ministry of Finance, Government of India and Small Industries Development Bank of India (SIDBI).

Ministry of Micro, Small and Medium Enterprises (MSME), Government of India has adopted the cluster development approach as a key strategy to enhance productivity and competitiveness as well as capacity building of micro and small enterprises (MSEs) and their clusters in the country.
A cluster is a group of enterprises located in an identifiable and, as far as practicable, contiguous area and producing similar products and services.
Objectives:
- To support sustainability and growth of MSEs by addressing common issues such as technology, skill and quality improvement, market access, access to capital etc.
- To build capacity of MSEs for common supportive action through formation of self help groups, federations, upgradation of associations etc.
- To create/upgrade infrastructure facilities in new/existing industrial areas/clusters of MSMEs.
- To establish common facility centres (for testing, training centres, raw material depots, waste treatment, complementing production processes etc.).

Similarity or complementarity in methods of production, quality control and testing, energy consumption, pollution control etc.
Similar level of technology and marketing strategies/practices
Channels for communication among the members of the cluster
Common Challenges and Opportunities

Small Industries Development Bank of India (SIDBI) is a national institution.
Its mission is to promote the development and financing of micro, small, and medium-sized enterprises (MSMEs).
SIDBI was established on 2 April 1990 under an Act of Parliament.
Headquarters – Lucknow