How ni-msme supports traditional MSME sectors through cluster development schemes

MSME sector contribute significantly to employment generation, value addition, exports and overall growth and development of the country’s economy. One of the vibrant areas of this sector, which demands additional attention, is the traditional crafts industry. Development of traditional crafts through better technologies and skills is highly necessary to withstand global and organized competition. Keeping this in mind, Government of India has introduced various schemes for not only preserving and protecting the skills and knowledge of traditional artisans, but also handholding and training them to develop their business.

In this line, institutions like ni-msme (National Institute for Micro, Small and Medium Enterprises) are playing a vital role in the development of MSMEs through the implementation of cluster development schemes. For example, SFURTI (Scheme of Fund for Regeneration of Traditional Industries) scheme has benefitted many clusters in fulfilling their infrastructure and training needs. The SFURTI scheme enhances the marketability of products of clusters by providing support for new products, design, packaging and marketing infrastructure. It also equips traditional artisans of the associated clusters with improved skills and capabilities through various training programmes.

A brief talk with some of the clusters who have availed the SFURTI scheme shows the impact of funding schemes in creating a development path for the traditional sector. Pembarthi Metalware, Mothpur Ikat Handloom and Shashi Varna Ieeja Handloom clusters share their business stories as they display their products at FTCCI conference on “Global Business Inclusiveness of Women” at Federation House, Hyderabad on 26-04-2019.Let’s read to know how they have been benefitted in availing government funding through ni-msme…

Pembarthi Metalware Cluster

Vishwakarma Brass Copper and Silver Cooperative Society, Pembarthi has been functioning since the age of Nizam nawabs. Established in 1956 by Ayla Achari,the main product of the enterprise is Metalware. The society which was started with 40 members has diversified over time with the production of home products and metalware. At present, there are 200 skilled members from 50 families.Through SFURTI scheme,the society is able to develop its household metalware business in a large manner.

“Our founder, Ayla Achari, has provided training to the members initially in the making of decorative articles, gift items, etc. and the skills are being transferred to the present generation. However, there is a need to provide formal training to our members as we diversify into more products.The support which we receive from ni-msme helps us to understand the market and improve our skills.The SFURTI (Scheme of Fund for Regeneration of Traditional Industries) scheme will help us in reviving our business in a huge manner. We have availed Rs.1,80,00,000/- funding through ni-msme.I believe ,schemes like this will enhance our potential to develop our business and ensure a secure future for our members.” says, Narasimhachari, Director. 

Mothkur Ikat Handloom Cluster

Mothkur Ikat Handloom Cluster is identified with the Handloom Weaver Cooperative Society which was founded in 1952.The society has been helping a lot of weavers in generating income through various ways.

ni-msme is supporting the society through various funding schemes and training programmes.“We have been undergoing various training programmes. At present, training has been provided for 6 batches. The members in each batch are trained in three categories – Weaving, Designing and Dying.Now, we are planning to give specialised training in designing.”says Managing Director ,V. Narasayya.

The financial assistance through SFURTI scheme will benefit the society in strengthening their business. “With an aim to develop our activities, we have availed the SFURTI scheme in 2016. We have received support from ILF in making our DPR. ni-msme supported us in receiving Rs.1,73,00,000/-.We are happy to avail this funding for infrastructure development.” says, Cluster Director , P. Lakshmi Narasayya.

Shashi Varna Ieeja Handloom Weavers Society

Shashi Varna Ieeja Handloom Weavers Society which consists of 188 weavers and 16 committee members specializes in Gadwal Handloom Sarees.With the support of ni-msme,they are able to initiate infrastructure development for their business.

“The government has allotted,30 quintals of land to us, in the Leeja Mandal. The land transfer is still under process. Once completed, we will begin the construction of our building. We are also planning to give training to our weavers. The training will be conducted by Master weavers in May. We are so happy that we received 70% of funding from government through ni-msme.”,says K. Veeresh, Cluster Development Agent.

Cluster-based approach is one of the proven strategies for successful development of MSME sector across the country. It is estimated that, India has the largest number of clusters, about 6000 rural clusters and 1200 industrial clusters. If we mobilize, network, and assist these clusters, they foster innovation through enhanced knowledge and industry-driven skills. This way, the traditional sector can be boosted in a productive manner and more employment opportunities can be created.