Odisha needs to focus on multi-product clusters: Centre

Bhubaneswar: Odisha needs to work towards creating infrastructure for multiproduct clusters in rural sectors to strengthen the rural economies, MSME Secretary Madhav Lal said today.

“The state must identify few prominent sectors in a particular rural segment and focus on their clusterisation with necessary support system,” Lal told a workshop ‘Make in India Role of MSMEs’ organized by World Trade Bhubaneswar here.

Referring to the Scheme of Fund for Regeneration of Traditional Industries (SFURTI), he said it is designed to strengthen the village and traditional sectors with relevant assistance. Make in India initiative will be successful if the rural economies can be transformed by integrating the capabilities of the rural industry in India.

Lal stressed on the role of local institutions and other verticals such as industry associations and chambers of commerce in channelising the MSME activities in the rural areas.

“In order to ensure that these support organizations play a more proactive role, the Government of India has introduced a system of accreditation and benchmarking of associations in terms of quality standards. This mechanism would align the government schemes with the mandates of these local associations,” he said.

Stating that there is a need for collective action at the cluster level as well as the state and the national level, Lal said specific interventions are called for wherever there are market failures and the government has to play a role in addressing to concerns of the MSME sector.

Chief Secretary G C Pati said Make in India initiative is a significant step towards building a strong industrial base in the country and Odisha stands to benefit significantly from this programme.

“However, first and foremost we need to address the concerns of MSME units which accounts for 90 per cent of all units in the state. To streamline MSME operations, the rigid regulatory and statutory compliances need to be eased,” Pati said.

Referring to the increasing role of self help groups in the rural areas, Pati said they are fast transforming the rural economy and in particular the women SHGs have emerged as active players in strengthening the clusterisation in rural areas.