CLUSTERS IN SSI SECTOR

12.1

Traditionally, there has been a phenomenon of a group of units manufacturing same or similar product in close geographical proximity to each other. Such groups were called clusters. Clustering has been recognised both nationally and internationally as an engine of growth and identification of the clusters in small-scale industries had facilitated effective policy formulation in the past. Clusters of Small Scale Industries were identified through the Second Census of Registered SSI units and are in use for various policy decisions till today. In view of the importance attached to clusters in the SSI sector, an attempt has been made to identify clusters in the Third Census of Small Scale Industries.

CLUSTERS IN THE REGISTERED SSI SECTOR

12.2

A district having 100 or more registered SSI units that were engaged in manufacturing the same product as per ASICC 2000 (at 5 digit) was considered as a cluster for that product in that district. Using this criterion, 1223 clusters covering 321 products were identified in the registered SSI sector. The list of the 1223 clusters is given in table no. R47 in the Appendix. These clusters rearranged into the 321 product-wise clusters are listed at table no. R48 in the Appendix. These clusters had a 32.68 % share in total number of registered units, 18.95 % in total market value of Fixed Assets, 16.99 % in total Gross Output and 27.66 % in total value of employment of manufacturing activity of the registered SSI sector. The details of the share of these clusters are given in the following table.

TABLE 64: CONTRIBUTION OF CLUSTERS IN REGISTERED SSI SECTOR

12.3

The 1223 clusters were identified in 26 States. The State-wise distribution of clusters is given in the following table.

TABLE 65: CONTRIBUTION OF CLUSTERS IN REGISTERED SSI SECTOR

TABLE 66: STATE-WISE DISTRIBUTION OF CLUSTERS IN THE REGISTERED SSI SECTOR

CLUSTERS IN THE UNREGISTERED SSI SECTOR

12.4

In the unregistered sector, each district having an estimated number of 500 or more unregistered SSI units which were engaged in manufacturing of a product as per ASICC 2000 (at 5 digit) was considered to form a cluster of that product in that district. Using this criterion, 819 clusters covering 250 products were identified in the unregistered SSI sector. The list of the 819 clusters is given in table no. UR17 in the Appendix. These clusters rearranged into the 250 product-wise clusters are listed at table no. UR18 in the Appendix. These clusters had a share of 37.85 % in total estimated number of unregistered units, 22.45 % in total estimated market value of Fixed Assets, 21.04 % in total estimated Gross Output and 34.63 % in total estimated value of employment of the manufacturing activity in the unregistered SSI Sector. The 819 clusters were identified in 25 States/ UTs. The State-wise details are given in the following table.

TABLE 67: STATE-WISE DISTRIBUTION OF PRODUCT CLUSTERS IN DISTRICTS
HAVING 500 OR MORE UNITS (ESTIMATED) PRODUCING THE SAME
PRODUCT/SERVICE IN UNREGISTERED SSI SECTOR