Transforming MSME Clusters in North-East India: An Assessment of Strategic Interventions

Abstract

The MSME sector in India is one of the most vibrant sectors, next to agriculture, in contributing to the socio-economic development of the nation. The North-East region of India which is blessed with abundant natural resources such as forest and oil, tea, water, etc. holds immense potential for the growth of MSMEs by utilizing these resources. However, despite these advantages, the MSMEs in the region face significant constraints including inadequate infrastructure, limited entrepreneurship, lack of access to finance, etc., which have hindered their growth. To address these challenges, the cluster development approach has emerged as an effective strategy, giving a fresh lease of life to the MSMEs in the region. This study examines the pre-intervention scenario and the challenges faced by MSME clusters in the North-East region of India. Furthermore, the study explores how the cluster development approach, through strategic interventions, has played a pivotal role in the transformation of MSME clusters in the region, with a focus on specific cluster examples.