Stakeholders Call for Holistic Cluster Rejuvenation with Focus on Infrastructure, Technology Adoption and Strengthening Domestic Manufacturing

MSMEs Positioned at the Centre of Cluster Development to Enhance Export Participation

The National Industrial Corridor Development Corporation (NICDC) organised a consultation meeting on the Union Budget announcement regarding the rejuvenation of export-oriented industrial clusters at Vanijya Bhawan, New Delhi.

The consultation was convened as a follow-up to the Post-Budget Webinar on “Sustaining and Strengthening Economic Growth” to carry forward deliberations on cluster revitalisation and translate Budget announcements into actionable strategies through sustained industry engagement. The meeting witnessed wide participation from representatives of Export Promotion Councils (EPCs), industry associations, financial institutions, research organisations, and government stakeholders.

During the deliberations, stakeholders emphasised the need for a holistic and balanced approach to cluster rejuvenation, integrating infrastructure upgradation with capacity building, technology adoption, and improved market access. The importance of strengthening domestic manufacturing ecosystems, particularly in sectors with high import dependence, was highlighted. Participants also stressed the need for robust testing, certification, and quality infrastructure to enhance global competitiveness and reduce reliance on overseas facilities.

The discussions underscored the importance of promoting innovation, research and development, and technology commercialisation within clusters. Targeted support for MSMEs to enhance productivity and facilitate their integration into global value chains was also emphasised.

Stakeholders highlighted the need for effective governance mechanisms, including industry-led participation through Special Purpose Vehicles (SPVs), and the establishment of cluster-level facilitation systems to support investors and enterprises. Simplification of regulatory processes, improved awareness and accessibility of government schemes, and greater flexibility at the state and district levels for context-specific implementation were also emphasised.

The consultation further reinforced the importance of developing integrated and future-ready industrial ecosystems, including social and urban infrastructure to support workforce retention and long-term sustainability. Strengthening design, innovation and intellectual property ecosystems, developing sustainable financing models, and leveraging existing government initiatives to scale high-potential clusters were also discussed.

A broad consensus emerged on placing MSMEs at the centre of cluster development efforts, with a focus on improving access to finance, enhancing capabilities, and enabling greater participation in export markets. The need to align cluster development with global demand trends and strengthen India’s position in global value chains was also highlighted.

The consultation provided a platform for constructive industry–government dialogue and facilitated the sharing of actionable recommendations to support the implementation of the Budget announcement on industrial cluster rejuvenation. The meeting marks a significant step towards translating Budget priorities into on-ground action.

The discussions were guided by CEO & Managing Director, NICDC, Shri Rajat Kumar Saini, who emphasised the importance of continued stakeholder engagement to refine and operationalise the cluster development framework.

The consultation saw participation from leading industry bodies and institutions, including ASSOCHAM, FICCI, CII, PHDCCI, NASSCOM, SIDBI, CSIR, National Productivity Council (NPC), Indian Dairy Association, Apparel Export Promotion Council (AEPC), Automotive Component Manufacturers Association of India (ACMA), Indian Machine Tool Manufacturers’ Association (IMTMA), Institute of Indian Foundrymen, Warehousing Association of India, and the Society of Indian Defence Manufacturers, among others. Representatives from industry and corporates such as Reliance, Tata Chemicals, Relaxo, Beumer Group and JLL, as well as sector-specific associations, also actively participated in the consultation.

The meeting was chaired by Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Shri Amardeep Singh Bhatia.

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About NICDC

National Industrial Corridor Development Corporation (NICDC) is Government of India’s nodal agency for planning, developing and implementing greenfield industrial smart cities to strengthen India’s manufacturing ecosystem and logistics competitiveness.    

Cluster rejuvenation for export competitiveness: integrated infrastructure, MSME centric reforms and industry led governance drive implementation. Rejuvenation of export oriented industrial clusters requires integrated infrastructure upgradation, technology adoption, capacity building and strengthened domestic manufacturing. Emphasis on enhanced testing, certification and quality infrastructure, promotion of innovation and technology commercialisation, and sustainable financing models. MSMEs are central, needing improved access to finance, capability enhancement and integration into global value chains. Implementation should adopt industry led governance via Special Purpose Vehicles, cluster level facilitation systems, regulatory simplification, and greater state and district flexibility to translate policy into actionable, demand aligned interventions.