1. City Cluster Economic Development (CCED) India Case Study SPMS-NIUA-APDS Supported by ADB WUF 5: Rio, Brazil March 2010

2. 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

3. Administrative units in CNCR NCR Total Area -30242 Sq Kms Total population -37 Million (2001) NCR Total Area -30242 Sq Kms Total population -37 Million (2001)

4. Competitive Business Clusters and Development Strategy in NCR India Profiling of important cities in India Profiling of economic Developm ent in NCR Identifica tion of important Business Clusters in NCR Diagnosti c of Selected Business clusters Busines s Plans for selected business clusters Pre- feasibility of important projects in business clusters

6. NCTGurgaonFridabadSonipatGhaziabad Food Products, beverages &Tobacco Products low Textiles highlow Leather & leather products low mediumlow Basic Chemical & chemical products low mediumhigh Rubber,plastic, petroleum and coal pdts lowhigh lowmedium Other non-metallic mineral pdts lowhighlowhighlow Basic metals & metal products mediumlowhighlowhigh Machinery & Equipment high Transport equipment & parts high Other manufacturing industries lowmediumhigh medium Manufacturing Concentration - NCR

7. Textiles- Readymade garments Auto Components General Engineering IT Enabled Services Four Important Manufacturing Industries For NCR

8. Diagnostic of Selected Business Clusters

9. National Sector Background Products Machinery & instruments, castings, forgings, fasteners, electronic goods and project exports. The engineering sector employs over 4 million skilled and semi-skilled workers Heavy and Light Engineering The sector can be categorized into Heavy Engineering and Light Engineering segments. Heavy engineering constitutes over 80 per cent of the total industry, while light engineering contributes the rest. The heavy engineering industry includes capital goods/machinery and equipment, and transport equipment. The light engineering industry includes items like castings, forgings and fasteners and sophisticated microprocessor-based process control equipment and diagnostic medical instruments Demand Creation is mainly from Infrastructure and process Industry The industry is dominated by large companies without with out foreign Collaboration. Small sector is dominated by vendors to medium and large players in the heavy engineering industry

10. Faridabad General Engineering

12. 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

13. Okhla RMG

15. 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

16. Proposed Interventions- Okhla RMG Quality Control and Improvement Cutting Room Re-organisation and Fabric Control Cutting Room Re-organisation and Fabric Control Textile 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 Improvement Production friendly Sample development Production planning Sewing Operator Training EDP / IT Application

17. Okhala Garment And Textiles Cluster Member Companies 23 Number of Units 90 Sewing Machines 15500 Garments /Annum 48 mn Turn Over (INR MILLION) 1500

18. 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 SMEs

19. Gurgaon, Faridabad and Okhla including NOIDA are important city cluster locations in NCR in Auto Component, General Engineering and RMG. Demand conditions are favorable as NCR itself is a major market for these three city clusters- therefore any investment is self sustainable. Long term investment in R&D required in all three clusters. Investment in soft skills like association governance, collaborative working etc. and firm level skill upgradation programmes will work as leveraging points for these clusters. Cluster development is combination of hard and soft inputs Major learning

20. 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.

21. PEARL/INDIA Peer Experience And Reflective Learning (PEARL) under JnNURM To create manageable networks between JNNURM 65 PEARL website (www.indiaurbanportal.in).www.indiaurbanportal.in Documentation of URBAN best practices. Newsletter PEARL Update. Conducting National and Groups Workshops.