'Cluster initiative key to NE economy' 

Shillong, May 9: Amidst severe competition posed by globalization, it is being largely felt that developing clusters of firms engaged in similar activities would be the most viable approach to uplift the small and traditional industrial sector in the northeast, Indian Institute of Entrepreneurship Director K Ahmed said today. 

Addressing the inauguration function of the State Regional Resource Centre here, Ahmed said the need for clusters (concentration of firms in particular sectors and localities) lie in the fact that small and medium scale enterprises (SMEs) can play a key role in economic growth and equitable development in the region. 

"Clustering not only offers the route to industrialisation by offering the SMEs the answer to unattained problems like acces to market, achieving homogenous standards and innovating products as well as improving their competitive position," he said. 

Ahmed said in the northeast, the approach has not been clear till date. Underlining the need for appropriate policy from state governments of the region and coordinated efforts of all stakeholders/agencies, Ahmed said the SME sector in the region can best develop by focussing on efforts in geographically concentrated clusters. 

The IIE director said the flagship programmes of the Centre aimed at cluster development have not been picked by the region. 

He said the IIE has identified 10 viable clusters in the northeast of late and 20 more would be identified in the current financial year. The institute would provide training, research and consultancy to develop these clusters. 

A Shillong office of the Guwahati-based Regional Resource Centre on cluster development was inaugurated here today. 

The Government of India had set up the RRC in IIE, Guwahati to propagate cluster development approach in NE. The RRC would have its nodal office in Guwahati and state centres in rest of the seven NE states with a holistic approach towards capacity building, providing handholding support and devising policy interventions in sustainable cluster development. 

Among the ten clusters identified by the IIE for development in NE are a jewelerry cluster in Manipur, food processing and mask making clusters in Arunachal and Eri and Cane and Bamboo clusters in Meghalaya.