REGIONS AND COUNTRIES -

ASIA, INDIA

Since 2006, UNIDO ITPO Italy has been contributing to, and supporting the implementation of an important project for micro, small, and medium enterprise development in India. This is in recognition of the need to reduce poverty through growth, and of the importance of SMEs in this endeavour, by creating sustainable employment and income security. The project is based on an innovative approach integrating technical assistance in the field of credit with necessary capacity-building and development activities such as cluster twinning, as well as investment and technology promotion.

The project is funded by the General Directorate for Cooperation & Development (DGCS), Ministry of External Affairs (MAE), Government of Italy. The Development Commissioner – Ministry of Micro, Small and Medium Enterprises, Government of India, is the Indian counterpart. The project targets some clusters in the Leather & Leather Goods (Chennai, Agra and Shantiniketan) and Automotive Components (Chennai) industries.

Project activities focus on three principal components, namely:

  • Cluster twinning: Cluster twinning activities focus on brining Indian and foreign clusters together, through cooperation agreements and the exchange of  best practice;

  • Investment and Technology Promotion: Foreign direct investment and technology transfer as means of  improving  international competitiveness;

  • Introduction of Mutual Credit Guarantee Schemes based on a system which is proven in Italy.

  • From the beginning, ITPO Italy has worked to identify any potentially interested Italian counterparts to participate in this project and to cooperate with the Indian SMEs and Institutions. The major contributions of ITPO Italy during 2008 were the following:

  • Participation in the Mutual Credit Guarantee Schemes (MCGS) Study Tour in India with the aim of introducing the modalities of the MCGS to Indian policy makers, MSME associations, and bankers, like Unionfidi Piemone and Banca Intesa San Paolo, who joined the Italian delegation and shared the Italian experience of the Confidi. The mission was important also to meet Indian institutions and BPIs in order to have a better understanding of investments opportunities available in India. 

  • Host and coordinate the visit of 2 Indian Delegates, one specialized in the auto component sector and the second in leather and footwear in order to promote a portfolio of individual Investment opportunities in India, in these industries.

  • Collaborate in the organization of the workshop on Business opportunities in India for private equity and venture capital funds organized jointly with AIFI, the Italian Association of Private Equity and Venture Capital and IVCA (Indian Venture Capital Association) in order to gauge any measurable interest of Private Equity Funds in Italy to participate and contribute to the UNIDO project.

  • Establish the conditions to facilitate a cooperation agreement between Indian Finished Leather Manufacturers and Exporters Association (IFLMEA) and Associazione Conciatori, Santa Croce sull’ Arno in Italy, to set the stage for future initiatives and options for both associations and countries to work together for the development of the tanning industry and the exchange of best practice.

  • Reinforce the cooperation agreement signed in 2007 between the Indian Shoe Federation and Unioncamere Marche for the leather and footwear industry and coordinate the second phase of the training on best practice in footwear manufacturing that benefited 14 footwear companies and 4 Indian institutions that participated in 10 days of training in the Marche Region, on-site at factory level.

Other initiatives were also developed focused on India in coordination with the UNIDO South Asia Representative’s Office, such as the organization and coordination of one study tour for three Indian policy-makers to get acquainted with Italian industrial districts. The study tour took the Indian participants to three of the main Italian industrial districts: Biella (textiles), Florence and Montevarchi (footwear and clothing design and production), Santa Croce sull'Arno (leather tanning), and Prato (textiles). The mission allowed the Indian representatives of the Ministries of Commerce & Industry, of Minority Affairs, and of Micro Small & Medium Enterprises to get to know Italian industrial districts. They also shared views and insights on SME development models and experiences based on the district approach, established direct contacts with many prominent Italian institutions and companies operating in textiles, fashion, and leather, as well as with Italian industrial associations such as the Chamber of Commerce of Biella, Città Studi of Biella, Assoconciatori, and Unindustria Prato.

During the second semester, a similar visit was organized for the Secretary for Micro, Small and Medium Enterprises of the Government of India, Mr. Dinesh Rai, for him to obtain a better understanding of Italian industrial districts, in particular, the Italian Footwear cluster of Vigevano. He was also able to observe and discuss the means used by local institutions to assist and support SMEs in Italy and to observe how these institutions implement programs abroad to meet the demand for internationalization of Micro & SMEs in emerging countries, such as India, to develop product competitiveness and entrepreneurial skills, and to help set and reach higher quality standards.