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Promoting Responsible Business by BMOs – Issue VII

Promoting Responsible Business by BMOs – Issue VII

We are thrilled to announce the successful seventh year of the “7 Responsible BMO Award” Programme, with 130 BMOs from 17 states participating. While fifteen exemplary cases are highlighted in this publication, commendable efforts were evident across all applicant BMOs. Congratulations to all for advancing responsible production. Empowering intermediary organizations, including BMOs at various levels, can effectively disseminate the message of responsible production to over 60 million MSMEs. We extend gratitude to Shri Sivasubramanian Ramann, CMD, SIDBI, for his gracious presence as Chief Guest and for felicitating the Awardees.

Promoting Responsible Business by BMOs – Issue VI

Promoting Responsible Business by BMOs – Issue VI

The “Responsible Indian BMOs” Award Programme celebrates its successful sixth year, with 150 BMOs from 18 states participating. While detailing fifteen exemplary cases, we acknowledge the commendable efforts of all applicants in promoting responsible production. Empowering intermediary organizations, including BMOs at various levels, is crucial for effectively disseminating the message of “Responsible Production” to India’s vast MSME sector. We extend gratitude to Shri B. B Swain, Hon’ble Secretary, Ministry of MSME, GoI, for gracing the event as Chief Guest, underscoring the importance of collaborative efforts in fostering sustainable practices within the industry.

Promoting Responsible Business by BMOs – Issue V

Promoting Responsible Business by BMOs – Issue V

We are delighted that this unique Award Programme for “Responsible Indian BMOs” has now successfully entered its fifth year. This year is special, as with the support of the Office of Development Commissioner, Ministry of MSME, we have taken the Award Programme to a new height by organizing “Cluster Conclave and 5th BMO Award: Innovate to Lead”. We are indeed thankful to Shri Giriraj Singh, Hon’ble Minister of State, Independent Charge, Ministry of MSME, Dr A K Panda, Secretary, Ministry of MSME and Shri Ram Mohan Mishra, AS&DCMSME, Ministry of MSME for their valued guidance and support in this effort. Around 160 BMOs from 17 states applied this time for the Award. While sixteen best cases have been detailed in this publication, efforts made by the other applicant BMOs are also very impressive. We heartily congratulate all the BMOs for the good work being done by them for promoting responsible production.

Promoting Responsible Business by BMOs – Issue IV

Promoting Responsible Business by BMOs – Issue IV

Issues related to responsible growth have also emerged as an area of critical importance and has got national importance with the announcement of Zero Effect Zero Defect (ZED) growth path and equally impor- tantly with the resolve of the global community in the form of Sustainable Development Goals (SDGs) and in particular SDG 8 (promoting decent work) and SDG 12 (promoting responsible consumption and production). However, it is but natural that given the enormous pressure of handling various aspects of business, almost always, sustainability challenges appear as a cost which is in need of further time and resources commitment. It is here, that conglomeration of MSMEs and entrepreneurs, which are historically the most trusted ally of the MSMEs, can play a significant role by demonstrating the scope of sustainable development and even working out means through which MSMEs can attain sustainability. Such conglomerations are also known as Business Membership Organizations (BMOs).

Promoting Responsible Business by BMOs – Issue III

Promoting Responsible Business by BMOs – Issue III

For the micro, small and medium enterprises (MSMEs), the backbone of both developing as well as developed nations, the challenge is how to promote these nearly 50 million MSMEs towards “Zero Defect Zero Effect” production. Interestingly, a significant proportion of these MSMEs are represented by their industry associations and Chambers of Commerce also called Business Membership Organizations (BMOs). BMOs being the most trusted ally of MSMEs, are best suited to promote the concept of “Responsible Business” in a balanced manner among millions of MSMEs in India.

Promoting Responsible Business by BMOs – Issue II

Promoting Responsible Business by BMOs – Issue II

For the micro, small and medium enterprises (MSMEs), the backbone of both developing as well as developed nations, the challenge is how to promote these nearly 50 million MSMEs towards “Zero Defect Zero Effect” production. Interestingly, a significant proportion of these MSMEs are represented by their industry associations and Chambers of Commerce also called Business Membership Organizations (BMOs). BMOs being the most trusted ally of MSMEs, are best suited to promote the concept of “Responsible Business” in a balanced manner among millions of MSMEs in India.

Promoting Responsible Business by BMOs

Promoting Responsible Business by BMOs

The Foundation for MSME Clusters being the premier organisation devoted to the cause of MSMEs and clusters, deemed it appropriate and timely to identify such BMOs that have made noteworthy contributions in the growth and development of MSMEs and therefore launched the “Awards for Responsible BMOs” programme and invited BMOs across the country to apply. The overwhelming numbers of applications received have been evaluated by an independent agency and the final selection of awardees has been made by eminent jury.

Bamboo Seven State Profiles

Bamboo Seven State Profiles

The seven state profiles is an attempt to present an overview of bamboo production and trade in India and the world, understand the current situation in Assam, Chhattisgarh, Jharkhand, Madhya Pradesh, Meghalaya, Mizoram, and Odisha and explore opportunities to add value to the lives of thousands of people who depend on bamboo for their livelihoods.
Chhattisgarh, Jharkhand, Madhya Pradesh, Meghalaya, Meghalaya, Mizoram, Odisha

An Overview of Bamboo, Its Different Eco-Friendly Products & Business Opportunities

An Overview of Bamboo, Its Different Eco-Friendly Products & Business Opportunities

India has been surpassed by many countries in value addition of bamboo products despite its rich resource base. The Government has taken mission-based initiatives in the past, leading to mixed results. A lot of work has been done by various institutions and entrepreneurs who have both succeeded and failed at scale. This book has been written as one document covering all the processes involved starting from cultivation, tissue culture, harvesting, usages, business opportunities, preservation, etc. related to bamboo India under the EU Switch Asia project: “To promote bamboo MSME clusters for sustainable development”.

Study on CFCs in Clusters in India – Learning from Case Studies and Way Forward

Study on CFCs in Clusters in India – Learning from Case Studies and Way Forward

This study aims to identify indicators of success, factors promoting success, and further measures to enhance Community Forest Cooperatives (CFCs). Through stakeholder discussions and analysis, factors such as SPV registration, leadership composition, and land ownership emerged as influential. Success is measured by factors including application approval time, operational speed, machinery utilization, and economic metrics. Recommendations will address improving SPV registration processes, leadership training, and aligning CFC purposes with community needs. Understanding these dynamics will facilitate the sustainable development and effectiveness of CFCs in community forestry initiatives.

Skill Development of Artisans – Policy Suggestions

Skill Development of Artisans – Policy Suggestions

Skill development programs encompass formal and informal approaches, undertaken by public agencies and private organizations alike. These programs typically fall into two categories: those focused on reskilling, upskilling, or acquiring new future skills, possibly with placement or entrepreneurial opportunities, and those leading directly to employment or self-employment. Both public and private sector initiatives, including formal marketing chains, start-ups, and CSR interventions, follow similar models. Whether through schematic programs or entrepreneurial ventures, skill development plays a crucial role in preparing individuals for the evolving demands of the workforce.

Bamboo Resource Status and Business Opportunities in Jharkhand

Bamboo Resource Status and Business Opportunities in Jharkhand

The report is about to present an overview of bamboo production and trade in India and the world, understand the current situation in Jharkhand and explore opportunities to add value to the lives of thousands of people who depend on bamboo for their livelihoods.

This publication has been produced under the Action: “Promote Bamboo MSME Clusters for Sustainable Development” with the financial assistance of the European Union and the Mukhyamantri Laghu Avam Kutir Udyam Vikas Board, Department of Industries, Government of Jharkhand.

Bamboo Case-Studies

Bamboo Case-Studies

Through case studies, FMC wants to encourage other bamboo artisans and entrepreneurs, nationally and internationally, to adopt similar strategies to break away from the shackles of poverty, together with mitigating climate change.

Bamboo Case-Studies

Bamboo Case-Studies

Through case studies, FMC wants to encourage other bamboo artisans and entrepreneurs, nationally and internationally, to adopt similar strategies to break away from the shackles of poverty, together with mitigating climate change.

COVID Responsive Policy Series 1 Impact of COVID-19 on Borrower MSMEs -Issues

COVID Responsive Policy Series 1 Impact of COVID-19 on Borrower MSMEs -Issues and Pointers for Way Forward

The advent of Covid-19 in 2020 had a cascading impact on the MSMEs of India, the banking system and the economy. Thanks largely to the quick liquidity infusion support to MSMEs through the banks, guaranteed by the Government of India and a few other measures to mitigate the impact of covid that helped provide a good degree of resilience to MSMEs without adversely affecting the sustenance of the banking system. There are however still a number of after-effects that still need to be dealt with across all sectors, particularly in the wake of rising NPAs thus requiring loan restructuring and liquidation of loans in the case of unviable enterprises.

In order to help identify the key areas of concern and suggest ways to resolve/mitigate them, the ‘Foundation for MSME Clusters’ (FMC), a not-for-profit NGO with support drawn from a European Union funded project, constituted a ‘Think Tank Group’ comprising of seven eminent persons. While two of them were drawn from the national level MSME industry association, the other five came from the banking sector in their individual capacity. They deliberated over a period of two months in October – November 2021 and recommended a slew of measures by mid December 2021 that can help the Government, Banks and relevant institutions to further work upon in their own context. These recommendations provided in the attached report along with the context and methodology should therefore be seen as intelligent pointers under its ‘COVID Response Policy Series 1’ to build on.

Value chain dynamics and variegated institutional environments: Inclusion and upgrading of women-owned bamboo micro-enterprises

Value chain dynamics and variegated institutional environments: Inclusion and upgrading of women-owned bamboo micro-enterprises

This working paper explores how value chain dynamics and variegated institutional environments affect the prospects for inclusion/exclusion and economic upgrading of women-owned micro-enterprises to the Indian bamboo value chain. The paper combines insights from the literatures on value chain analysis and institutional theory to create a novel theoretical framework for answering these questions. It then applies this framework to analysis of the inclusion/exclusion and economic upgrading challenges of micro-enterprises in the bamboo value chains of four Indian states: Assam and Meghalaya in the Northeast, Odisha in the East, and Madhya Pradesh in the Center. The empirical analysis highlights how the interaction between value chain dynamics and regulatory, normative, and cultural-cognitive institutions at different scales (national, state, and local) both enhance and undermine the inclusion/exclusion and economic upgrading of micro-enterprises to the Indian bamboo value chains with subsequent implications for marginalized bamboo producer communities in India. The conclusion highlights the main findings, policy, and research implications of the working paper.

sustainable Sourcing and Women’s Entrepreneurship in the Bamboo Industry of India

Sustainable Sourcing and Women’s Entrepreneurship in the Bamboo Industry of India

FMC support with CBS (Copenhagen Business School), SIDBI (Small Industrial Development bank of India), CEMCA (Commonwealth educational Media Centre for Asia) are working on a project to Promote bamboo MSME clusters for Sustainable Development funded by: EU Switch Asia. In last 4 years of project implementation, we have worked on promotion of bamboo-based clusters in 9 different states of India, promotion of green GDP, providing market linkages for social enterprises working on bamboo-based products, working on bamboo harvesting techniques, various trainings for farmers, producers etc.

To support the bamboo artisans and spread information about bamboo sector of India among the students of your prestigious institute. This case study can be used for students studying supply chain management, marketing management, circular economics, sustainability development and other courses related to sustainable products.

Policy Paper on Promoting Own Account Enterprises (OAEs)

Policy Paper on Promoting Own Account Enterprises (OAEs)

Micro, Small and Medium Enterprise (MSME) sector is a key player in generating employment and contributing to the India’s GDP and industrial output. There are 6.34 Crore enterprises in various industries, employing close to 11.1 Crore people.1 In all, the MSME sector accounts for 29 percent of India’s GDP and 40 percent of exports.

Promoting Sustainable Development of MSMEs – Policy Recommendations on Public Schemes of Assistance & their Implementation

Promoting Sustainable Development of MSMEs – Policy Recommendations on Public Schemes of Assistance & their Implementation

Sustainability has already taken centre stage of development globally and Govt. of India has made several commitments at national and international platforms. Make in India with Zero Defect & Zero Effect initiatives of the Government express the zeal to balance economic growth with sustainability and social inclusion. All the sectors of economy viz. agriculture, manufacturing and services will need to contribute in this collective endeavour of nation building. With a renewed thrust on making manufacturing significant part of sustainable economic growth, consumption of resources including fossil fuels and primary materials besides social standards assume far more significance than before.

Financing Sustainable Production among MSME Clusters – Experiential Learnings and Policy Recommendations

Financing Sustainable Production among MSME Clusters – Experiential Learnings and Policy Recommendations

The Micro, Small and Medium Enterprises (MSME) sector plays worldwide an important and significant catalytic role for economic development through enterprise creation and employment generation. The MSME sector in India covers a wide spectrum of economic activities. With more than 44.7 million enterprises, this sector generates more than 100 million jobs, next only to agriculture sector. It also contributes around 45 percent of total industrial manufacturing and 43 percent of India’s total exports. The sector manufactures over 6000 products, ranging from the traditional to hi-tech items, in addition to providing a wide range of services. With the changing scenario, the sector needs to constantly move up in the value chain as well as strengthen its competitiveness in local as well as global markets.

Study on Brand Building in Clusters to Improve Competitiveness of MSMEs

Study on Brand Building in Clusters to Improve Competitiveness of MSMEs

The study has captured ten successful international examples of cluster based branding and the learning that has relevance for Indian clusters and could be extended to other developing countries as well. Branding potential has also been analyzed in eleven national clusters. Possible role of policy and clsuter stakeholders for cluster based brand promotion is suggested based on the leaning from the international cases. This book is an outcome of a study commissioned by SIDBI to FMC on cluster based branding.

Changing Paradigms of Cluster Development – Conference Theme Paper

Changing Paradigms of Cluster Development – Conference Theme Paper

An overview of the practice of competitiveness through cluster development approach. We begin by looking at some of the roots of the practice and how it has evolved to become a significant force in the way many organizations and many countries now pursue economic development. We then provide an overview of the practice of competitiveness, looking specifically at how cluster-based initiatives have been developed in the context of multilateral and regional organizations.

Training Manual 51 FAQs for easy access loans through schemes of Govt. of India

Training Manual 51 FAQs for easy access loans through schemes of Govt. of India

This booklet has been prepared to (a) make micro and small enterprises (MSEs) better prepared to make them loan-fit and (b) make MSMEs aware about various financing schemes of the Banks and Government of India, and in particular detail the two most popular financing schemes (i) Credit Linked Capital Subsidy Scheme (CLCSS for foundry units) and (ii) Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE).

The booklet has been prepared as a part of the Project “Scaling up Sustainable Development of MSME Clusters in India”, being jointly implemented by Foundation for MSME Clusters (FMC), The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Global Reporting Initiative (GRI), Indian Institute of Corporate Affairs (IICA), United Nations Industrial Development Organization (UNIDO) and Small Industries Development Bank of India (SIDBI) and partly funded by the EU Switch Asia Project.

Mapping Energy, Environment and Social Issues among MSME Clusters in India-Way Forward

Mapping Energy, Environment and Social Issues among MSME Clusters in India-Way Forward

This report has indentified clusters from 11 sub-sectors in India which are economically significant, energy intensive and environment sensitive through a systematic methodology. A way forward has been suggested for tackling various energy, environment and social issues in the clusters. This study is funded by IICA.

Fostering Business Responsibility in MSME Clusters Volume 1

Fostering Business Responsibility in MSME Clusters Volume 1

Fostering Business Responsibility in MSME Clusters’ is in three volumes. Volume I is for Policy Makers, Volume II for Implementing Agencies (IAs) and Volume III for Cluster Development Agents (CDAs). These volumes are a guide to the varied roles and responsibilities all three stakeholders in encouraging Business Responsibility among Micro, Small and Medium Enterprises (MSMEs) through a cluster development approach have been explained in these volumes by using various case studies and illustrations. The document was made under the IICA-GIZ programme.

Fostering Business Responsibility in MSME Clusters Volume 3

Fostering Business Responsibility in MSME Clusters Volume 3

Fostering Business Responsibility in MSME Clusters’ is in three volumes. Volume I is for Policy Makers, Volume II for Implementing Agencies (IAs) and Volume III for Cluster Development Agents (CDAs). These volumes are a guide to the varied roles and responsibilities all three stakeholders in encouraging Business Responsibility among Micro, Small and Medium Enterprises (MSMEs) through a cluster development approach have been explained in these volumes by using various case studies and illustrations. The document was made under the IICA-GIZ programme.

Fostering Business Responsibility in MSME Clusters Volume 2

Fostering Business Responsibility in MSME Clusters Volume 2

The paper focused on “Cluster Twinning” was implemented that aimed at optimal process for the linking two clusters across different countries at different levels of development, i.e. a developed or mature and a developing or emerging cluster that were nevertheless producing similar products.

More specifically, cluster twinning was meant to enhance the competitiveness and sustainability of existing but currently underachieving and not yet fully developed SME cluster. This objective was to be achieved by forging twinning arrangements between Indian and foreign clusters, by strengthening the capacities of firms within clusters through linkages among the internal cluster firms and between the firms and their support institutions

Cluster Twinning: Understanding the Dynamics and Methodological Issues

Cluster Twinning: Understanding the Dynamics and Methodological Issues

The paper focused on “Cluster Twinning” was implemented that aimed at optimal process for the linking two clusters across different countries at different levels of development, i.e. a developed or mature and a developing or emerging cluster that were nevertheless producing similar products.

More specifically, cluster twinning was meant to enhance the competitiveness and sustainability of existing but currently underachieving and not yet fully developed SME cluster. This objective was to be achieved by forging twinning arrangements between Indian and foreign clusters, by strengthening the capacities of firms within clusters through linkages among the internal cluster firms and between the firms and their support institutions

Pro Poor Cluster Development Methodology

Pro Poor Cluster Development Methodology

This document sponsored by EDII focuses on methodology of cluster development programme in poverty intensive clusters mostly consists of rural and urban informal clusters where primary stakeholders are mostly in poverty. How to identify the poor stakeholders, understand their problems, needs and prepare an appropriate action plan has been explained in the document along with the methodology of implementation of the programme to address poverty.

Micro-Enterprise Development A Demand Side Perspective

Micro-Enterprise Development A Demand Side Perspective

TThis report brings out demand side view points on how to create a suitable enterprise led approach for poverty alleviation and also suggest changes in the policy of schematic support. This report is based on a field study undertaken by FMC in 12 poverty intensive locations in India of which 6 have no micro enterprises clusters and another 6 micro enterprise based. This study was funded by UNDP.

Responsible Banking special focus on Micro, Medium Enterprise

Responsible Banking special focus on Micro, Medium Enterprise

This book provides a snapshot of the role and significance of the financial institutions (FIs) in fostering Business Responsibility (BR), particularly in the context of MSMEs in India, and is in line with the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business released by the Ministry of Corporate Affairs. Responsible banking lays stress on the environmental and social consequences of projects and financial products, rather than just the economic and financial impact. The study was conducted with the objective of understanding the extent and ways in which the international and national FIs foster BR among enterprises through responsible lending and also map international and national BR instruments related to FIs for sustainable lending.

Analysis of Factors for Employment in MSME Clusters

Analysis of Factors for Employment in MSME Clusters

This report is an outcome of a study commissioned by Institute of Applied Manpower Research (IAMR) of Planning Commission, Government of India to FMC. The report captured the phenomenon of “jobless growth” and draw policy suggestions, based on the field study of 46 MSME clusters in India. The study outlined major factors that have led to jobless growth and these factors were further analysed with respect to the sectors (industrial/traditional/micro-enterprise) the clusters fell in. Policy suggestions (central and state level) were also derived from the findings of the study and presented in the report.

Promoting Innovation in Clusters

Promoting Innovation in Clusters

This is a policy guidebook aspires to provide roadmap for cluster practitioners, development organizations, donor institutions and government agencies working towards promoting innovations in MSME clusters. It offers a practical approach and flexible framework for implementing an innovation promotion project in clusters, thus paving way for new frontiers of knowledge to develop innovative clusters. The book is the outcome of learning derived from the project ‘Promoting Innovation Clusters’ implemented by FMC for The National Science & Technology Entrepreneurship Development Board (NSTEDB), Department of Science and Technology, Ministry of Science & Technology, Government of India.

Making Clusters Work – UNIDO Methodology

Making Clusters Work – UNIDO Methodology

This document outlines the methodology of implementation of cluster development programme for improving the competitiveness of MSMEs. The document owes its origin and development to experiences gained in programme implementation in India and abroad, training programmes conducted nationally and internationally and literature review available on clusters.

Working Together Works – Cluster Case Studies

Working Together Works – Cluster Case Studies

This book is a compilation of 19 case studies of cluster initiatives. It provides an insight into diverse cluster development approaches that can be undertaken with as much variety of objectives and outcomes. The idea is to capture the diversity of clusters, approaches,implementation agencies and objectives to help the reader draw one’s own lessons and conclusions. The case studies include a wide range of products among micro enterprises such as handlooms items, brass & bell metal, traditional footwear, crochet & lace work, coir products, hand tools etc.

State Cluster Development Policy Road Map

State Cluster Development Policy Road Map

To develop a roadmap to promote Cluster development initiatives in the state of Madhya Pradesh with a view to support and foster development of Micro, Small & Medium Enterprises (MSME) sector. There is a broad consensus that many countries in the world as well as many states in India have benefitted through cluster development approach. However, in case of Madhya Pradesh, success story of cluster initiatives is minimal. Atal Bihari Vajpayee Institute of Good Governance and Policy Analysis (AIGGPA) commissioned the study to examine the status of Cluster development initiatives in the state and to develop policy road map for cluster initiatives in association with Foundation of MSME Cluster (FMC), New Delhi.

Getting to Know Clusters: Frequently Asked Questions

Getting to Know Clusters: Frequently Asked Questions

This document contains 69 simple questions in 18 short sections allowing the reader to sift through the type of questions of his/her interest as per the sections in the table of contents. The basic definition of cluster, its typology and spread has been captured. Issues of whether clusters should be newly created and aspects of how cluster policy is different from conventional enterprise development are also dealt with. Some of the terms like social capital, cluster mapping, cluster diagnosis, trust building, cluster action plan, networks and service providers which are commonly used in cluster development have been defined in the document.

Policy and Status Paper on Cluster Development in India

Policy and Status Paper on Cluster Development in India

This report takes stock of the developments that have taken place in the arena of cluster development and suggest inputs to a policy framework for promotion of cluster based MSME development in India. The document draws heavily from a wealth of secondary literature and benefited immensely from the documents shared by several practitioners as well as insights obtained from a number of unpublished sources. Report was funded by Swiss Agency for Development and Cooperation.

Clusters Development and Poverty Alleviation

Clusters Development and Poverty Alleviation

This book focuses on cluster development as a possible strategy to reduce poverty in India, where clusters already exist and poverty is widespread. “Policy interventions” to promote poverty reduction through cluster development has been clearly defined. Attempt has also been made to estimate the resource requirement to promote such clusters in India.

Energy Mapping in Rourkela Sponge Iron and Induction Furnace Clusters

Energy Mapping in Rourkela Sponge Iron and Induction Furnace Clusters

In the current situation of India, energy availability and consumption is prime concern. In many parts of the country the energy Demand-Supply gap has been increasing consistently. The industrial sector accounts for nearly 42% of the total Energy consumption in the country. Hence, to bridge the Energy Demand – Supply gap it is very important that serious efforts are put in the direction of “energy conservation”. It has been observed that there lies a great potential of Energy Conservation in the SMEs clusters, which can be utilised by enhancing the “Energy Efficiency” of these units. The study enables us to find out the energy consumption pattern of a given SME cluster and possible Energy Efficiency measures to minimise the energy wastage. This study deals with the issues of energy consumption and conservation only.

Energy Mapping of Jalandhar Sports Goods Cluster

Energy Mapping of Jalandhar Sports Goods Cluster

To map the energy usage of the Jalandhar Sports goods cluster. In the process data has been collected about the actual requirement the cluster has, deficits it faces, how it meets these deficits, what is the cluster’s expected energy requirement for the coming years and what are its investments in renewable sources of energy or innovations in the fields of energy. Recommendations have been made which firms can implement to achieve energy efficiency thereby resulting in financial savings.

Energy Issues in Indian Clusters A Background Note on Energy related interventions in Indian Clusters

Energy Issues in Indian Clusters A Background Note on Energy related interventions in Indian Clusters

There is interaction among energy, environment and sustainable development in an economy. As most of the environmental problems are associated with energy use and economic development without energy use is difficult, there is an “energy trilemma” involving energy consumption, economic development and environmental impact (Khan, 1992). Industry has emerged as the major energy-consuming sector in India as well, with a share of about 42% of the total energy consumption (Reddy and Balachandra, 2003). From the clusters’ perspective the maximum energy intensive industries are the part of traditional manufacturing clusters and some of the prominent energy intensive clusters include Foundry, Glass and ceramics, Electroplating, Rubber and Plastic, etc.

As there is no macro level information available to map the energy utilisation of MSME Clusters, analysis for the entire MSME sector is being presented to understand the scenario. The data also suggests that energy source in the MSMEs is dictated by availability, price, reliability and convenience of use and not much on environmental considerations.