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Cluster Development Programme

  • Published
    18th Sep, 2021

GS-III: Economy

  • Economic Sectors

Small Industries Development Bank of India (SIDBI) recently handed over a commitment letter to Government of Assam of Rs. 350 crores under Cluster Development Fund.

Prelims question:

Consider the following statements regarding Cluster Development Programme:

  1. It is a scheme of Ministry of Micro, Small and Medium Enterprises (MSME) for enhancing the productivity and competitiveness of Micro and Small Enterprises only.
  2. It aims to set up Common Facility Centres for testing, training, raw material depot, effluent treatment, complementing production processes etc.
  3. The Cluster Development Fund is managed by Small Industries Development Bank of India (SIDBI).

Which of the above statements are correct?

  • A.
  • B.
  • C.
  • D.

Mains Question:

Cluster-based development for Micro, Small, and Medium Enterprises can potentially solve many challenges faced by these industries in India. Discuss.   (250 Words)


  • Introduce by highlighting the significance of MSMEs in India’s economy and employment generation
  • Enumerate various challenges faced by MSME sectors
  • Describe cluster-based approach and show how it can solve many challenges faced by MSMEs in an efficient manner
  • Way Forward / Conclusion

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