UNIDO in 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.

The project is funded for € 3.000.000 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 industries (Chennai).

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.

During 2009 ITPO Italy intends to continue to collaborate with this project by favouring agreements between districts/clusters, by creating a databank that includes profiles of Italian and Indian firms and to identify financial instruments or facilities that can ensure financial sustainability of investments.