Domestic Savings in the Coir Industry Cluster

By : E. Bhaskaran

Page No: 169-183

Abstract
Scheme of Fund for Regeneration of Traditional Industries or SFURTI is one of the flagship schemes of the Ministry of Micro, Small & Medium Enterprises for the creation of common facility centres and infrastructure development. This scheme has been integral to the achievement of various Sustainable Development Goals (SDGs) in the past few years, including Goal 8, ‘Decent Work and Economic Growth’ and Goal 9, ‘Industry, Innovation and Infrastructure’. Many state-of-the-art machines and equipment have been set up, helping MSMEs bring innovation in their work. The objective of this study is to examine the physical and financial performance of the coir industry clusters (CICs) in India, and to estimate the technical efficiency of CICs. The methodology adopted is collection of secondary input data like the number of common facility centres created, investment by artisans using domestic savings and grants from the Government of India, and employment created, and output data like production, sales and monthly earnings of artisans after the application of the cluster development approach. The data was collected from various websites and success stories of the CICs. The study reveals an improvement in the state-wise physical and financial performance of CICs in India, and increase in production, sales and earnings per month of artisans before and after the intervention. Thus, due to the implementation of the cluster development approach, nine coir clusters are efficient and if the other 11 clusters follow the slack variables, input and output targets, and peer cluster to increase their production, sales and monthly earnings of artisans, they can become efficient. There is an average increase in production, sales and monthly earnings of artisans. Domestic savings by artisans, and investments in the cluster along with grants from the Government of India are the reason for improvement in the performance of 20 coir clusters in India. This trend will continue if the cluster development approach is continued.

Author:
E. Bhaskaran : General Manager-Grade-I / Joint Director (Engineering), Department of Industries and Commerce, Government of Tamil Nadu, Tirupattur, Tamil Nadu, India.
 

DOI: https://doi.org/10.32381/PROD.2024.65.02.7