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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:
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Cluster twinning: Cluster twinning activities focus
on brining Indian and foreign clusters together,
through cooperation agreements and the exchange of
best practice;
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Investment and Technology Promotion: Foreign direct
investment and technology transfer as means of
improving international competitiveness;
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Introduction of Mutual Credit Guarantee Schemes
based on a system which is proven in Italy.
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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:
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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.
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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.
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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.
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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.
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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.
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