" Networking Strategies for Development of Textile SMEs"


The Small and Medium Enterprises (SMEs), which are constitute the backbone of Indian textile and clothing industry, need to gear up themselves to sustain and enlarge the global as well as domestic market shares, in view of economic liberalization within the country and globalization of trade.  The integration of markets under ATC/ WTO and consequent phasing out of quotas by the year 2004, will pose opportunities as well as threats.   An innovative and integrated strategy involving various stake holders in the process of SMEs development is the need of the hour, to convert the threats into opportunities.  The textile SMEs, located in identifiable clusters in India, face several common problems: lack of technology upgradation, inadequate capacity to source the requisite raw materials as well as marketing of products, inability to avail institutional credit, absence of product innovation and diversification and inadequacies in the area of infrastructure.  An individual SME by being in relative isolation and smaller in size is not in a position to address these problems on its own.  Therefore, a cluster oriented approach by way of net working of the SMEs and related stake holders is the right strategy to synergize their efforts and resources for sustainable development of the industry. 

With the objective of ensuring collective efficiency of textile SMEs in improving their business processes and support systems, the Textiles Committee has launched a Cluster Based Development Programme in 19 clusters across the country.  Net working of stake holders in the cluster is the core theme of this Cluster Development Programme.

It is in this background that a series of workshops to sensitize the industry and other support service institutions in textile clusters, on the subject of “Networking Strategies for Development of Textile SMEs” are being held in 23 clusters in the country, with the following objectives.


  1. to sensitize the textile SMEs, support service institutions and other stake holders in textile clusters about the advantages of networking

  2. to provide working tools for developing consortium approach in business processes – sourcing of raw materials, marketing, financing etc.,


The Textiles Committee which is coordinating the Cluster Development Programme will organize these workshops in coordination with local industry associations, State / Central Government agencies and other stake holders in the cluster.


Entrepreneurship Development Institute of India (EDI), Ahmedabad, an institution with vast experience in Entrepreneurship Development in the country will be the resource agency for this Programme.  Prof. V Padmanand, M.Phil., PGDMM, FUWAI, FCCS, (Cambridge, U.K.), Programme Director of EDI will be the lead resource person in conducting the Workshops.  


Senior management personnel of Textile SMEs, suppliers of raw materials and machinery, financial institutions, traders, marketing agencies, Export Promotion Councils, Industry Associations and other State/ Central Government Agencies, Individual Consultants etc.   Approximately, 150 persons representing these segments are expected to attend each Workshop. 


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