A Brief Account of SME Cluster Development in Kerala

Abstract

Development of Industrial Clusters is a project of UNIDO, based on Italian experience, started in 1995 for the growth of SMEs all over the world with emphasis on developing countries. Government of India adopted the Cluster Development Programme in 1996. Cluster Development activity has been made a pivotal area for Industrial Development of UNIDO. About 400 SME Clusters have been identified and developmental activities are in progress. Government of Kerala included Cluster Development as part of its Industrial Policy in 2003. Industries Department of Govt. of Kerala is taking the initiative for identification and development of Clusters through the District Industries Centres (DICs). About 75 SME Clusters have been identified and they are at different stages of development. Central Government agencies like Coir Board, SISI, and NGOs like Federation of Industrial Clusters, etc. are also taking the initiative in Cluster Development. But the Cluster Development activity in Kerala is yet to attain a remarkable success level.