National Resource Centre for Cluster Development (NRCD)

Cluster development approach has emerged as one of the most innovative and effective strategy for enhancing competitiveness and promoting innovation in the Micro, Small and Medium Enterprises (MSMEs) sector in holistic way. The basic problem that small and medium enterprises face is working in isolation. Absence of latest technology and improved skills, inadequate linkages with marketing channels, support institutions and service providers and lack of information on technology and market are major challenges of MSME sector which are hindering development process. MSMEs can significantly increase their competitive advantages through mutual co-operation and engaging business development service providers for cost reduction, capacity building, technology up gradation and infrastructure development through cluster approach.

To cater to the needs of the small enterprises in the country and to enable the MSME sector to face the challenges of globalisation, the office of Development Commissioner for MSME has launched Micro and Small Enterprises Cluster Development programme. It was felt necessary to establish a national level resource centre to promote cluster development in the country to dynamise the operations of MSME sector. The National Resource Centre for Cluster Development (NRCD) came into existence in January 2004, at ni-msme with the active support of the Development Commissioner (MSME), Ministry of MSME, Govt. of India.

NRCD was constituted with the principal charter of helping the MSMEs by implementing the cluster development approach, and providing guidance and assistance to the clusters by way of training, handholding, implementing, monitoring, mapping, research and information dissemination.


To be the global centre of excellence for SME cluster development

  • To function as nodal agency for cluster development within the country and abroad
  • To disseminate information and provide guidance in terms of technology, marketing, finance and human resource development for cluster stakeholders
  • To serve as a link among developmental agencies involved in cluster development
  • To organise training programmes for various stakeholders like government officers, banks, industry associations, NGOs, and other stakeholders
  • To profile and empanel BDS providers
  • To map clusters in the country to facilitate policy formulation
  • To provide handholding and monitoring services
  • To adopt clusters for development
  • To facilitate research on cluster development
  • To improve national and regional capacities as well as global competitiveness of clusters by supporting the government initiatives in the country

Key services

  • Assistance in cluster selection
  • Training
  • Interactive workshops
  • Monitoring
  • Handholding
  • Follow-up
  • Documentation
  • BDS deployment
  • Implementation

Some of the projects handled by ni-msme in the past include the following:

Preparation of Diagnostic Study Reports:
Conducting diagnostic study and preparation of Diagnostic Study Report of clusters is a core competence of NRCD. These studies aim at finding the problems and prospects, analysis of business operations, key strategic direction/s the cluster needs to follow and suggesting a development oriented action plan. These DSRs were prepared for agencies like DC (MSME), DC (Handlooms), DC (Handicrafts), KVIC and Coir Board, Government of Uttar Pradesh. Recently survey of three herbal health and cosmetic clusters located at Ratnagiri, Padubidri and Thrissur was conducted under ADB project of KVIC. Presently the Institute conducting survey of three Textile and Apparel Manufacturing clusters namely Solapur, Bhiwandi and Malegoan in the state of Maharashtra.

DSRs prepared for O/o Development Commissioner (MSME) under MSECDP scheme

  1. Brass & Bell Metal Products Cluster, Hajo, Assam
  2. Surgical Instruments Cluster, Baruipur, West Bengal
  3. Auto Components Cluster, Jamshedpur, Jharkhand
  4. Brass Utencils Cluster, Pareo, Bihar
  5. Gun, Munger Cluster, Bihar
  6. Wet Grinder Cluster, Coimbatore, Tamil Nadu
  7. Foundry Cluster, Belgaum, Karnataka
  8. Fan Cluster, Hyderabad, Andhra Pradesh
  9. Wooden Furniture Cluster, Srinagar, J&K
  10. Cricket Bat Cluster, Ananthnag, J&K
  11. Pharma Cluster, Goa
  12. Pharma Cluster, Thane, Maharashtra
  13. Rice Flakes Cluster, Ahemedabad, Gujarat
  14. Pharma Cluster, Indore
  15. Sewing Machines Cluster, Ludhiana, Punjab
  16. Readymade Garments Cluster, New Delhi
  17. Rice Milling Cluster, Karnal, Hariyana
  18. Pottery Cluster, Chunar, UP
  19. Surveying Instruments Cluster, Roorkee, Uttranchal
  20. Cotton Hosiery Cluster, Kanpur, UP
  21. Band Baja cluster, Meerut
  22. Embroidery cluster, Meerut
  23. Zari & Zardozi cluster, Unnao
  24. Perfume & Fragrances industry cluster, Kannauj
  25. Zari zardozi cluster, Hardoi
  26. Rice milling cluster, Rampur
  27. Rice milling cluster, Pilibhit
  28. Leather cluster, Sultanpur
  29. Utensils cluster, Bahraich
  30. Power looms, Adari, Mau
  31. Power loom, Ghosi, Mau
  32. Power looms, Jahanganj, Azamgarh
  33. Minakari cluster, Varanasi
  34. Block printing cluster, Bijnour
  35. Nagina wood handicraft cluster, Bijnour
  36. Essential oil/Aromatic cluster, Bareilly
  37. Cotton waste processing cluster, JP Nagar
  38. Chandi paper work cluster, Moradabad
  39. Textile/cotton waste recycling cluster, JP Nagar
  40. Battery inverter cluster, JP Nagar
  41. Chanderi sari cluster, Lalitpur
  42. Rice Mill Cluster, Alangulam, Tirunelveli District, TamilNadu
  43. Rice Mill Cluster, Pudhuvayal – Pallathur, Sivagangai District, Tamilnadu
  44. Wire Products Cluster, Mathur & Pudukottai, Pudukottai District, TamilNadu
  45. Fish Pickles Cluster, Tarangambadi, Nagapatinam District, TamilNadu
  46. Rubber Cluster – Nagercoil, Kanyakumari District, TamilNadu
  47. Cement Pipes Cluster, Chinnadharapuram - Karur District, TamilNadu
  48. Essential Oil Cluster, Ooty- Kothagiri, TamilNadu
  49. Plastics Cluster, Hyderabad, Andhra Pradesh
  50. Leather Cluster, Hyderabad, Andhra Pradesh
  51. Leather Cluster, Agra, Uttar Pradesh
  52. Lace Cluster, Narsapur, Andhra Pradesh
  53. Kannur Coir Cluster, Kerala
  54. Haripad Coir Cluster, Kerala
  55. Kodungallur Coir Cluster, Kerala
  56. Krishnagiri Coir Cluster, Tamil Nadu
  57. Dharmapuri Coir Cluster, Tamil Nadu
  58. Kanyakumari Coir Cluster, Tamil Nadu
  59. West Godavari Coir Cluster, Andhra Pradesh
  60. Vishakapatnam Coir Cluster, Andhra Pradesh
  61. Vizianagaram Coir Cluster, Andhra Pradesh
  62. Chittor Coir Cluster, Andhra Pradesh
  63. Harihara Khadi Cluster, Karnataka

Support services provided in preparation, validation and implementation of DSRs for Coir Clusters under SFURTI

  1. Salem Coir Cluster Salem, Tamilnadu
  2. Gudiyattam Coir Cluster Vellore, Tamilnadu
  3. Cuddalore Coir Cluster Cuddalore, Tamilnadu
  4. Sigampunari Coir Cluster Sivagaggai, Tamilnadu
  5. Pattukkottai Coir Cluster Tanjavur, Tamilnadu
  6. Periyakulam Coir Cluster Teni, Tamilnadu
  7. Rajahmundry Coir Cluster, A.P
  8. Srikakulam Coir Cluster A.P
  9. Sakhigopal Coir Cluster Orissa
  10. Alanahat Coir Cluster Orissa
  11. Rangat middle Andaman Coir cluster, A&N Islands
  12. Pondicherry Coir Cluster Pondicherry

Support services provided in preparation, validation and implementation of DSRs for KVIC Clusters under SFURTI

  1. Belur Khadi Cluster, Hubli, Karnataka
  2. Hebbilly Cotton Khadi Cluster, Karnataka
  3. Sircila Khadi Cluster, Metpalli, AP
  4. Srikakulam Khadi cluster, AP
  5. Nachiyarkovil Brass metal Cluster, Thanjavur
  6. Devarkonda Tribal Jewellary Cluster, AP
  7. Dindigal Siddha & Ayurveda Cluster, Tamilnadu
  8. Sulur Khadi cluster, Coimbattoor, TamilNadu
  9. Pandichery Khadi Cluster, Pandichery, TamilNadu
  10. Gadchiroli Pottery Cluster, Chandrapur, Maharashtra
  11. Sankarankovil Khadi Cluster, Tamil Nadu
  12. Woodcraft Cluster, Mysore, Karnataka
  13. Sisal Fibre Cluster, Mysore, Karnataka

DSRs prepared for O/o Development Commissioner (Handlooms) under IHCDP Scheme

  1. Handloom Cluster, Barabanki
  2. Handloom Cluster, Mubarakpur

Apart from the above prepared business plans for 10 Handicraft Clusters
DSRs prepared under SFURTI /AHVY schemes

  1. Harihara Khadi Cluster, Karnataka
  2. Srikalahasti Kalamkari Cluster, Andhra Pradesh
  3. Jonnada Food Processing Cluster, Andhra Pradesh
  4. Proddutur Khadi and Silk Cluster, Andhra Pradesh
  5. Haripalem Mesta & Palm Fibre products cluster, Andhra Pradesh
  6. West Godavari Coir Cluster, Andhra Pradesh
  7. Vishakapatnam, Coir Cluster, Andhra Pradesh
  8. Vizianagaram, Coir Cluster, Andhra Pradesh
  9. Chittor, Coir Cluster, Andhra Pradesh
  10. Kanyakumari, Coir Cluster, Tamil Nadu
  11. Dharmapuri Coir Cluster, Tamil Nadu
  12. Krishnagiri Coir Cluster, Tamil Nadu
  13. Kannur Coir Cluster, Kerala
  14. Haripad Coir Cluster, Kerala
  15. Kodungallur Coir Cluster, Kerala
  16. Mysore Wooden Inlay Cluster
  17. Palakkad Pottery & Paper Machie Cluster

Handholding & Monitoring Services extended in 20 DC (MSME) clusters:
Provided handholding & monitoring services in 20 DC (MSME) clusters during September 2003 – March 2007. The officers of MSME-DIs were trained as Cluster Development Executives (CDEs) in 3-Phases, supported them in conducting Diagnostic Studies, extended handholding & monitoring support. The interventions in the clusters have given very good results in areas like strengthening of Associations, Capacity building of cluster actors, Technology Up gradation, Quality certifications, BDS linkages, Network formation, Market development & Exports, setting up of CFCs, use of ICT and GI registration.

As Implementing Agency:
Recently the Institute has successfully completed interventions in Barabanki and Mubarakpur Handloom clusters as an Implementing Agency selected by DC (Handlooms). Earlier the Institute implemented cluster development projects in Agra Footwear Cluster and Narsapur Chrochet Lace cluster sponsored by DC (MSME).

As Technical Agency:
The Institute has provided services as a Technical Agency under SFRUTI Scheme in 12 Coir clusters and 12 KVIC Clusters spread across Andhra Pradesh, Karnataka, Tamil nadu, Pondichery, Maharashtra and A&N Islands. Presently, supporting implementing agencies and cluster SPVs in six clusters

Training of officials/Bankers
The Institute regularly conducts a number of training programs for various organizations like DC (MSME), DC (Handlooms), KVIC, Coir Board, Industry Departments of State Governments, NABARD, Canara Banks, Oriental Bank of Commerce and SBH fulfilling the need for popularizing the concept and methodology of cluster development and raising a trained cadre of officials including Cluster Development Executives (CDEs).

Orientation programs for Directors of MSME – DIs:
The Institute organized orientation programmes on cluster development for the benefit of Directors of MSME-DIs.

Awareness Program on Cluster Development for Industry Officials of 10 selected State Governments:
The Institute also organized awareness programmes on cluster development for the benefit of the officials of State Governments for the benefit of Karnataka, Goa, Uttar Pradesh, Uttarakhand, Jharkhand, Bihar, Chhattisgarh, Madhya Pradesh, Rajasthan and Assam.

National Workshop:
A “National Workshop on MSME Cluster Development” was organized at New Delhi during 28-29 January 08 sponsored by Ministry of MSME, GOI, GTZ, SIDBI, SBI Factors Ltd. The workshop was a was well received and participated by international and national agencies, like– DFID, GTZ, ILO, UNIDO, World Bank, SDC and Secretaries and senior officials of Government of India and State Governments, Cluster Development Agencies and Cluster Stake holders. Over 120 Delegates have participated in the Workshop and 28 Key note Speakers under eight themes presented their views. The proceedings of the Workshop were circulated among the participating agencies.

The Institute has publised two publication on cluster development viz. “SME clusters Development- A Training Manual” and “Interventionary Instruments for Cluster Development – A Handbook” which are being used for training of CDE/As and as a reference material in addressing the day to day issues facing the cluster development professionals respectively.

Govt. of India has implemented Integrated Handloom Development Scheme with an objective of developing the handloom weavers both in the private and cooperative sector, through Cluster Development Programme. Under this project, the Institute has served as Cluster Resource cum Monitoring Agency (CRMA) for monitoring and evaluation in a systematic and scientific manner and to suggest and guide the implementing agencies to achieve the desired objectives of the cluster. Under this assignment the Institute supported 37 clusters in Andhra Pradesh and 24 clusters in Kerala.

Development of Clusters in Jharkahnd:
The Department of Industries, Government of Jharkhand entrusted ni-msme for mapping of clusters across the State and also scope for development of induced clusters. The Institute has conducted regional workshops at Hazaribagh, Girighi, Dhanbad, Bokaro and Ranchi Districts of the State inviting the officials of Industries Department, Agriculture Department, Forest Department, representatives of Industry Associations and NGOs, Entrepreneurs and Artisans. The Clusters located across the State have been identified to explore possibility for taking up cluster interventions. With in-depth interactions during the workshops and also small group meetings, the cluster data was collected, analyzed and ranked for identification of potential cluster for development.

International Training Programme on SME Promotion through Cluster Approach:
ni-msme had spread its wings overseas as a trainer of civilian officers from abroad for getting equipped with the needed information, skill acquisition and wherewithal for possible adoption of cluster approach in the SME sector in their respective countries.

Capacity Building of Business Membership Organizations:
ni-msme with its vast experience in cluster development and also enterprise promotion and development, has supported six industry associations under the project titled ‘Capacity Development of Business Membership Organisations (BMO) in India’ which is part of the MSME Umbrella Programme being implemented by GIZ, Office of DC MSME and SIDBI Under Indo- German bilateral cooperation. The Industry Associations supported include Nalgonda Drug Manufacturers Association (NDMA), Gulbarga Industrial Estate Manufacturers Association (GIEMA), Consortium of Service Providers for Up Gradation of Enterprises (CAPSULE), Uppal Industries Association (UIA), Cherlapally Industries Association (CIA) and Machilipatnam Imitation Jewelry Park Member’s Welfare Association (MIJPMWA). The Associations were supported in building capacities, souring funds through public support schemes, income generation through various training and consulting activities and also approaching /submitting their issues to Government for policy implication.

As Nodal Agency
The Institute is serving in the capacity of Nodal Agency for implementation of SFURTI scheme of Ministry of MSME for development of 18 traditional industry clusters in the states of Andhra Pradesh, Jharkhand, Kerala, Maharashtra, Telangana, and Punjab. Further, the Institute is also working closely with NBCFDC and NSFDC for development of handloom and handicraft clusters.


ni-msme as Nodal Agency

S.No. Name of the Cluster
1 Flavoured Coconut Milk & Vargin Coconunt Oil Cluster, Tirur
2 Bhatinda Honey Processing Cluster, Bhatinda
3 Hoshiarpur Wooden Inlay Cluster, Hoshiarpur (Revised)
4 Mothkur Ikkat Handloom Cluster, Mothkur
5 Pembarthi Metalware Cluster, Pembarthi
6 Ieeja Gadwal Handloom Cluster, Ieeja (Revised)
7 Kondapalli Wooden Toys Cluster (Revised)
8 Sus Garment Cluster
9 Mangaon Bamboo Cluster
10 Sukrigarh Gold & Silver Jewellery Cluster
11 Bundu Lac Farming and Processing Cluster
12 Lohargada Honey Beeking Cluster
13 Sakoli Bamboo Cluster, Sakoli
14 Wardha Bamboo Cluster, Wardha, Maharastra
15 Kariyatpur Brass Manufacuting, Haribagh, Jharkh
16 Bundu Bamboo Craft Cluster, Ranchi, Jharkhand
17 Basanthrai Badge and Embroidery Product Cluster
18 Anantadev Wood Product Craft Cluster

ni-msme as Technical Agency

S.No. Name of the Cluster
1 Hari Hara Khadi Cluster, Davangere
2 Srikalahasti Kalamkari Craft Cluster, Srikalahasti
3 Jonnada Food Processing Cluster, Jonnada
4 Sawantwadi Coir Cluster, Sawantwadi
5 Pendur Coir Cluster, Pendur
6 Vizainagaram Coir Cluster
7 Chittoor Coir Cluster
8 Kadiyapu Lanka Coir Cluster
9 Amalapuram Coir Cluster