SIDBI launches new scheme to strengthen MSME clusters

New Delhi, Sep 25 (PTI) The Small Industries Development Bank of India (SIDBI) has rolled out the Development of Industry Associations (DIA) scheme to create stronger and financially sustainable industry associations for micro, small and medium enterprises (MSMEs).

The initiative was inaugurated by Department of Financial Services (DFS) Secretary M Nagaraju at the National Conclave on DIA in the capital on Wednesday, an official statement said.

The conclave saw participation from about 125 representatives of 90 industry associations across sectors such as engineering, textiles, plastics, electronics, food processing and furniture, including eight associations from four north-eastern states.

SIDBI CMD Manoj Mittal said, "Strong clusters need strong industry associations." He said the bank would pursue a dual strategy — supporting associations with infrastructure, trained human resources and initial activities in a demand-driven approach, while also digitally strengthening the ecosystem through a portal for networking, research and addressing technical and financial needs.

"The ultimate objective is to create financially sustainable associations that provide strategic services to members, similar to farmer-producer organisations which have scaled rapidly and become transformational," Mittal said.

Nagaraju stressed that Indian clusters must move from the establishment stage to becoming "innovation epicentres" shaping global value chains.

"Industry associations must evolve from being representatives to becoming catalysts of transformation," he said.

Participants also discussed innovative models for sustainability such as MSME solution centres run by retired professionals, gain-sharing with workers, cutting paperwork and revenue generation from specialised services. PTI MHS MHS KSS KSS