City Cluster Economic Development (CCED)India Case Study

SPMS-NIUA-APDS

Supported by ADB

WUF 5: Rio, BrazilMarch 2010

Objectives of CCED • Assess spatial and economic characteristics and

explain patterns

• Identify key challenges

• Explore good practices and innovative solutions

• Develop innovative strategies

• Disseminate knowledge

NCR Total Area -30242 Sq KmsTotal population -37 Million (2001)

NCR Total Area -30242 Sq KmsTotal population -37 Million (2001)

 NCT Gurgaon Fridabad Sonipat Ghaziabad

Food Products, beverages &Tobacco Products low low low low lowTextiles high low low low low

Leather & leather products low low medium low lowBasic Chemical & chemical products

low low low medium highRubber,plastic, petroleum and coal

pdts low high high low mediumOther non-metallic mineral pdts

low high low high lowBasic metals & metal products medium low high low high

Machinery & Equipment high high high high highTransport equipment & parts high high high high high

Other manufacturing industrieslow medium high high medium

Manufacturing Concentration - NCR

• Textiles- Readymade garments

• Auto Components

• General Engineering

• IT Enabled Services

Four Important Manufacturing Industries For NCR

Faridabad General Engineering

• Around 40% of the Readymade Garments (RMG) of the country are made in NCR

• It is one of the largest sources for different types of Readymade Garments

• There are approximately 2500 units comprising of manufacturers, fabricators, Embroidery and other supporting units.

• The Okhla cluster contributes about 16 % to the total readymade garments exported from India.

• Most of the small firms have family owned expertise in areas such as quality controller, finance controller etc. except a few diploma holders for merchandising.

• Large firms and export houses have commercially qualified employees for production, inventory control and designing work.

Major Characteristics –RMG NCR

Okhla RMG

Faridabad Engineering Cluster -Activities The long-run vision of the cluster is “The Faridabad Engineering cluster will become highly competitive in both domestic and international markets by adopting the best practices in production process improved technology and innovative marketing”

Short Term Activites Long Term Activites• Quality and standards

• Productivity improvement

• To improve use of Information Technology in the cluster

• Expanding markets and enhancing market penetration

• Improving supply chain management practices

• Workers’ health and safety programmes

• To improve access to finance

• Joint purchase of raw material

• Tool Room Facilities• Reverse Engineering and CAD/ CAM

Centre• Testing Centre (up gradation) of QMC

Proposed Interventions- Okhla RMGQuality Control and ImprovementQuality Control and Improvement

Cutting Room Re-organisation and Fabric Control

Cutting Room Re-organisation and Fabric Control

Textile Knowledge centreTextile Knowledge centre

Plant layout Garment Engineering Use of standards Line balancing

Raw Material Store Pattern Making of

Specialized products

R&D and innovations

Training Support

Cluster Based Government

Support

Knowledge Sharing

Productivity ImprovementProductivity Improvement

Production friendly Sample development

Production planning Sewing Operator Training

EDP / IT ApplicationEDP / IT Application

Okhala Garment And Textiles Cluster

Strategic Plan for Competitiveness• Develop Strategic Partnerships

• Develop linkages between the local industrial units, technological and research institutes

• Participation in domestic and international trade fairs

• Networking of stakeholders for convergence of services

• Commitment to Social Responsibility

• Seek Govt. participation in authoritative manner

• Remove bottlenecks in infrastructure

• Work towards resolution of critical issues for SME’s

Major learning

CCED 2

• Preparation of Baseline Information- Data, industry structure value chain and spatial location

•  Investment Analysis and Opportunities  

• Prepare pre-feasibility study of a selected action plan for a marketable inter-sectoral project for the garment industry cluster.

PEARL/INDIA

• Peer Experience And Reflective Learning (PEARL) under JnNURM

• To create manageable networks between JNNURM 65

• PEARL website (www.indiaurbanportal.in).

• Documentation of URBAN best practices.

• Newsletter “PEARL Update” .

• Conducting National and Groups Workshops.