INDUSTRIAL CLUSTERS ? A BOOM FOR MICRO SMALL AND MEDIUM ENTERPRISES

The industrial sector plays a significant role in the development of all nations. In developing nations, the Micro, Small, and Medium Enterprises (MSMEs) have been given much focused attention due to its low capital requirement and high employment potential. The United Nation’s Industrial Development Organisation’s (UNIDO) Cluster Development Programme is a project based on Italian Industrial Clusters for the growth of Small and Medium Enterprises all over the world with emphasis on developing nations. The Government of India and subsequently the Government of Kerala have taken several initiatives for the cluster development programme for the growth of small scale industries since 1996 and 2003 respectively. This paper throws light on various such initiatives taken by the Government and other agencies for cluster development activities, their objectives and functioning.