Clusterkraft e-Newsletter (Vol.15 )
National
NATIONAL NEWS
Clusters to aid growth in manufacturing sector
PM has constituted a high-level committee to accelerate manufacturing sector growth of 12% and transform India into a manufacturing hub. Sub-sectors under focus include textiles, automobiles, leather, and food processing industries, steel, metals, chemical, and petroleum products. more
Re- introduction of Small and Medium Enterprises Development Bill in the Budget Session
Small and Medium Enterprises Development (SMED) Bill will be re-introduced with the reconvening of the budget session. The Bill provides a legal framework to promote the sector's growth and enhance its competitiveness. It also includes enhancement of credit to SMEs at reasonable rate of interest so that small enterprises may grow and graduate to medium enterprises. more
CII debates setting up urban industrial clusters
CII on Sunday mooted the idea of setting up 100 intermediate cities complete with physical and social infrastructure including industrial clusters to address the problem of migrating population. CII supported the starting of Bharat Nirman II, a new initiative that looks beyond rural infrastructure and focuses on physical and social infrastructure. more
Union Bank targets business of Rs 1.6 trillion with the help of SME clusters
Union Bank of India has set a total business target of Rs 1, 60,000 crore for the current fiscal and has identified retail, SMEs, agriculture and corporates as growth areas for the year. more
Industrial Cluster Development to achieve 12% growth
The Union government is focusing on the growth of the manufacturing industry using the ‘cluster development approach'. The government has targeted to achieve a growth of 12% in the industrial sector in the next five years as against 9% now. more
Leather Technology Park to be set up in Nellore leather cluster
A world class leather technology park would be set up in Nellore district of Andhra Pradesh to act as nodal point for research and development for the industry. more
Centre to focus on developing industrial clusters
Number of induced clusters needs to be increased with an objective to boost the manufacturing sector and create more employment while focusing on developing industrial clusters and upgrading the technology to reduce the number of sick units. The North-East and the Southern cluster will join hands to produce better results. more
Special Investment Regions in MSME clusters
Special economic zones (SEZs) are a talk of the past; the government is now planning to set-up five-six Special Investment Regions (SIRs). The objective is to identify mother industries and create infrastructure for putting-up downstream units around them. So far $23.5 billion has been utilized over the last 15 years. more
INTERNATIONAL NEWS
Bangladesh Knitwear Cluster to launch productivity service
Productivity improvement service for knit industry will be launched by Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). The agreement will be signed under the name of “Capacity building of the knitwear sector through productivity improvement” for a period of one year. more
Clusters for ensuring profit for Polish Exporters
Polish exporters have complained of a slow growth of their profit margin despite a decent growth in the profits, the problem being that only 20 per cent of the exports are directly sent. Rest of the share reaches other countries via markets like the Netherlands , France , Germany or the UK . more
Aba centre for leather, garment clusters ready soon: Nigeria
United Nation Industrial Development Organization (UNIDO) assisted Common Facility Center for Leather and Garment Clusters in Aba is soon to be held. It looks forward to serve more than 10,000 entrepreneurs and employ more than 30,000 people. more
ARTICLES
IPRs are the most valuable corporate assets by Latha R Nair
With the establishment of the WTO and the signing of the agreement on Trade Related Aspects of Intellectual Property Rights (Trips) in 1995, the profile and scope of IPRs have undergone a sea change in India .
Regular awareness workshops on IPRs are being conducted by the government. IPRs are being recognized as a major tool for economic and social development. Such lack of awareness among right holders simply leads to the misuse of the very IPRs that are their economic tools. more
Innovation Index for Clusters
The first-ever report measuring levels of innovation and key economic activity in the central San Joaquin Valley (Fresno, Madera, Tulare and Kings Counties) were released.
The report is called, “The Innovation Economy Agenda: Setting Priorities and Assessing Progress in the Central San Joaquin Valley Region”. Known as the Innovation Index, it outlines a checklist of 10 ingredients required for a region to be successful in the knowledge-based innovation economy. The Innovation Index is expected to spark a discussion about the future direction of the region Key Findings.
The Innovation Index also highlights the importance of universities in innovation-driven economic development. more
Principles of Productivity and Operations Management for Small and Mid-size Business Clusters
A Small and Medium-size enterprise has various definitions, depending on the purpose of each definition. It can, for instance, be quoted as ‘a small firm that is an independent business, managed by its owner or part-owners and having a small market share.' SME is made up of “autonomous enterprises” which provide jobs to less than 250 people, having an annual turnover of not more than EUR 50 million and/or an annual balance sheet not crossing EUR 43 million.
The medium-size enterprises focus on “quality of life issues” more than stock values. Factually only about three per cent of all the SMEs are able to grow wishfully as far as the employment or the turnover is concerned. The manufacturing sector in the developed countries is shrinking gradually and also, the role of the SMEs in the GDP has been constantly growing. It has been observed over a period of time that a firm's size and its growth rate are negatively correlated. The SMEs can indeed work towards building their virtual or soft assets on order to expand. more
Textile Cluster Development: Then and Now
The industry's connection with agriculture and ancient culture makes it stand out in comparison to other countries. It employs 35 million people that makes it a socially important industry. Despite all the efforts it has not yet been able to achieve the levels expected. Studies in the past suggested that quota elimination will provide maximum benefits to India and China but China has presented a better performance than India .
The General Budget for 2006-2007 proposes a fresh set of incentives. The cluster development approach adopted by the government will be continued for the handloom sector and 100 more clusters will be set up at the cost of Rs. 50 crores. more
EVENTS
UNIDO- ILO training on Export Consortia Development
UNIDO and ILO, in collaboration, are conducting a 5 day training programme on export consortia development with help of the experience of the Italian Federation of Export Consortia (Federexport). The course is intended for those involved in the establishment and provision of institutional support to export consortia, including representatives from: export promotion agencies, chambers of commerce and industry, SME development agencies, private sector associations, export consultants and policy makers. more
WIPO-INSME International Training Program on the Role of Intellectual Property in Raising Financing Opportunities for Small and Medium-sized Enterprises
WIPO in association with INSME plans to hold a seminar on the abovementioned topic on 11-12 July 2006 in Geneva .
NEW PUBLICATIONS
UNIDO has recently launched two new books on cluster development and its relevance to developing countries:
Did you know Rajasthan Clusters???
The rich heritage of Rajasthan has evolved over centuries. Today, the crafts from Rajasthan have established an unsurpassable reputation and an identity and demand of their own, both in the national as well as in the international market. Handicraft exports from the state alone account for 9.5% of the net exports.
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The above bar diagram represents the Sectoral distribution of the Artisanal Clusters in Rajasthan
Textile Clusters in Rajasthan form 41% of the total artisanal clusters and strengthen its economy along with providing widespread employment to the local artisans. Each district has an exclusive blend of traditional and modern techniques of spinning, weaving and processing. The most distinct and well-known type of printing includes Dabu hand-block printing, Bagru printing, Azrak print and Sanganer.
Another famous form of art is that of the embellishments done on these fabrics using thread, mirror and gold brocade. Tonk, Bikaner , and Jaipur are generally known for Hand-knotted woolen carpets in Persian style.
There has been a noticeable upward trend in export of textiles. Rs .223.05 crores has been the total exports of carpets and Rs. 0.20 crores worth of handloom items have been exported in 1999-2000 respectively.
Earthenware is another important age-old craft cluster that comprises of 13% of the total artisanal clusters in Rajasthan. Apart from terracotta toys, most of the villages and communities have potters, and articles of daily use such as pots, chillams, hookas and vessels that are made apart from terracotta toys.
Blue Art Pottery is a traditional art form from Persia and Afghanistan . Its products include vases, lamp shades, ash trays, figurines, jars and accessory items.
Woodwork clusters comprise 10% of the total artisanal clusters in Rajasthan. The present sandalwood items include mythological figurines apart from the delicate carvings and finishing touches on furniture, windows, partitions, beds and sofas that it is admired for.
Large amount of wood-work is done in the traditional Jodhpur cluster alone. The exports of handicrafts from this cluster have gone up to $ 270 million in 2005-06.
Accessory clusters form 8% of the total artisanal clusters. The state is well-known for its rich culture of kundan (precious stone with emeralds), gold and silver jewellery and is India 's important source for precious and semi precious stones like; Ruby, Emerald, Garnets, Agate, Amethyst, Topaz, Lapis lazuli, Carnelian, etc. Gem cutting, polishing and setting in Jaipur are well renowned for its artistry.
There is a great potential for the craft because of the high-level skill that the artisans possess and hence accounts for 17.6% of the total exports.
Rajasthani School of painting forms a major part of the art history with flourishing schools of Kangra, Jaipur, Mewar, Jodhpur and Mughal. 6% of the total artisanal clusters are that of paintings which is done by skilled artisans on walls and in form of miniatures, in folk styles.
Thewa is one of the crafts practiced by a few hereditary crafts persons mainly in Pratapgarh. Apart from these, there are mainly wall paintings that are done in Kota and Bundi. Miniature painting is one of the most famous forms of painting done since ancient times.
Leather is yet another important craft that is widely practiced. 5% of the total artisanal clusters in the state are those of leather work and main products comprise of richly designed mojari or pagrakhi that are intricately embroidered with silk threads and bead work in bright colors. Udaipuria and Nagaur clusters are predominantly famous for such leather jutties. There is also a wide range of bags, purses, belts, seats, etc. made from camel hide extensively due to its softness and flexibility. Richly embroidered handbags made of Khas, are made in Sawai Madhopur. According to the 1999-2000 reports there has been a total export of leather and leather products worth Rs.16.54 crores.
Stoneware clusters form 4% of the total artisanal clusters in the state. Yellow lime stone, sand stone, and colored and white marble can be found apart from granite and marble that are available in large quantities in Rajasthan. According to 1999-2000 there has been a total export of Rs.174.26 of Marble granite from the state only.
Metal ware clusters form 3% of the total artisanal clusters in the state. Damascening, lac coloring, enameling, engraving, inlay, punching and casting - all techniques are well-known. Rajasthan, Jaipur, Jodhpur and Udaipur are the main centers for metal craft. The items include a large range of vases, lamps, jewellery boxes, picture frames apart from figurines, shields and swords etc.
There is also high-quality of silver-work that is done in Rajasthan and the products made include spice boxes, rose-water sprinklers, caskets and hukkas apart from carved silver furniture, like bed-legs, divan-legs, and swings with links marked with bird designs.
Toys and Dolls clusters form 3% of the total artisanal clusters. Puppetry or kathputhlis as popularly known is an ancient and popular form of folk entertainment. They are mainly made of stuffed cloth decorated with tinsel and embroidered fabric, wood and paper machie, impressive brightly colored dresses in small sizes. Merta in Nagaur is known for soft tinted clay toys while Udaipur 's is famous for its wooden toys.
Cane and Bamboo clusters form 2% of the total artisanal clusters in the state. The bamboo production is concentrated in Banswara and Abu Road centres. Main product is that of Reed Moorah that is mainly made in Jaipur and Ajmer .
Horn and Bone clusters comprise 4% of the total artisanal clusters in the state. The articles made include salvers, tumblers, jewellery, hukka bases, figurines, handles for weapons like swords and daggers, howdahs for riding on elephants, palanquins, thrones, couches, and divans. This famous craft is mainly practiced for its bangles of various sizes which cover the whole arm, from the wrist to the shoulder. Jali work or patterning a network of ivory to create a lacy look is a specialty apart from the figurines made of ivory.
Musical Instrument clusters form 1% of the total artisanal clusters. Rajasthan is rich in folk musical instruments and they are preserved even today. Important ones being: rawanhatha, sindhi sarangi jantar, kamachayacha and satara.
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