Government to introduce rating index for industrial clusters

NEW DELHI: The government is considering introduction of a rating index for industrial clusters, the absence of which has so far kept potential buyers circumspect. The cluster competitiveness index, proposed by the Planning Commission as a tool to market the over-6,000 existing clusters in the country, will evaluate and benchmark them on various fields of performance and competitiveness.

“Clusters have been existing in India for decades but they have failed to attract enough attention for lack of set standards, best management practices and technology,” a senior official told ET, adding that the Plan panel feels that such an index will help compare them with others in similar sectors or geographies.

The index, expected to come into force from 2014, will help establish the clusters as brands with ratings, besides providing guidance to agencies and government bodies wanting to prop up the performance of these clusters.

India, which so far has not been able to generate enough investor interest in its special trade zones, does not have a policy on standards for industrial clusters. The Plan panel feels the index could be the first step toward improving the productivity and competitiveness of industrial clusters in the country. According to the official, buyers are always in search of first-hand information on these clusters so that they can be sure of purchasing quality products from India.

The absence of any rating of these clusters makes it difficult for them to make a choice. The proposed index will classify these clusters on the basis of their share in the local industry/GDP, availability of infrastructure and level of R&D and technology involved, supply chain management, financial strength and the availability of skilled manpower.

As per the proposal, the index will be created using fresh data on units. In the first phase, only those clusters that meet the criteria of having reliable data on its members and which have an organisation cluster association, will partake in this evaluation.

The project will begin on a pilot basis on about 60 clusters, including apparel clusters in Ludhiana and Tirupur, leather clusters in Chennai and Agra and diamond clusters in Surat. The Plan panel has already invited bids from the agencies concerned and is expected to shortlist a consultant for the task in a month’s time.