SOIL Report 2008 - ACCESS Development Services

Chapter IVA quick glance at some of the large, well-developed clusters gives the following list of some well-knownclusters, where a product is identified with a location. (See Table 4.12). Even as these ‘clusters’ are verypopular, livelihood practitioners may not quite have paid attention to the fact that there is similar potentialin many other areas.Table 4.12 Major Clusters in IndiaProductSports GoodsHand-toolsGlass and CeramicsLeather ProductsLocksScientific InstrumentsSafety MatchesBicycles and PartsBrass PartsDiesel Engines and PartsIndustrial ChemicalsElectronicsDomestic Electrical AppliancesWall ClocksPlaceMeerut, JullundhurJalandhar, NagpurKura, FirozabadBangalore, Chennai, Tanagra (Kolkata), Kanpur, Ammapettai,Ajmeri Gate (Delhi), RaichurAligarhAmbala, AjmerSivakasiLudhianaJamnagarKolhapur, Agra, Rajkot, Coimbatore, GhaziabadAlwar, Cuttack, Ghaziabad, Okhla, Mayapuri, ThaneBombay, Pune, Bangalore, DelhiBombay, DelhiMorbiClusterDevelopmentInitiativesstrive toenhance overallperformanceof the clusterthrough targetedjoint action ofselect clusterstakeholders,e.g. firms, localinstitutions,businessdevelopmentservice providersetc.In line with the special livelihood opportunities offered by some of these well-developed clusters, evenother potential clusters can develop and thrive. However, this would necessitate conscious efforts inencouraging some of the lead entrepreneurs of the area (of the identified activities) to invite others, tofacilitate entry of other related and support industries, facilitating finance from bank and other financialinstitutions among others. Cluster Development Initiatives strive to enhance overall performance of thecluster through targeted joint action of select cluster stakeholders, e.g. firms, local institutions, businessdevelopment service (BDS) providers etc. Such joint actions lead to direct or indirect business gains ofthe stakeholders. The linkages created in the process, empower the implementing institutions and leadsto the creation of an effective local governance framework. In the process, the cluster grows and alsogains capacity to carry this growth momentum in the future. Around 400 SME (industrial) and 6,000artisan/micro-enterprises clusters are estimated to exist in India.The potential for development of spatial advantages have been identified in more than 6,000 clustersin India. These include clusters of Auto Components, Ball Bearing, Bell Metal Utensils, Bicycle Parts,Brass and German Silver Utensils, Brass Parts, Brass Utensils, Building Hardware, Canned & ProcessedFish, and many others. An updated list of potential clusters is available at http://www.msmefoundation.org/Cluster_India.aspx.While developing a Cluster we see the key problem faced by microenterprises as one of relative isolationrather than scale or size. Isolated enterprises are unable to achieve economies of scale, lack negotiatingpower, find it difficult to specialise and have limited access to credit, strategic information, technologyand markets. Small and micro-enterprises can significantly increase their comparative advantages bycooperating with one another and building linkages with private or public service providers. However,this often involves building trust among the present players, which is one of the most critical tasks.96