SIDBI launches a low cost, innovative and a self-propelling model of cluster development, through its national scheme - Development of Industry Associations - DIA. The National Conclave on DIA was inaugurated by M Nagaraju, Secretary DFS, Ministry of Finance, on 24^th September 2025 in New Delhi.

Around 125 representatives from around 90 industry associations, all across the country, including 8 industry associations from 4 north-eastern states, participated in the Conclave. The Industry Associations represented sectors including engineering, plastic, printing, textiles, food processing, furniture, jewellery, electronics, etc.

Speaking on the occasion Manoj Mittal, CMD, SIDBI said that “Strong Clusters need Strong Industry Associations”. SIDBI will follow a dual strategy – firstly, support industry associations for infrastructure, trained human resource and initial activities in a flexible and demand driven approach and secondly digitally strengthen the eco-system through a portal created. The portal will support all registered associations and their members to participate and do research on topics of their interest, networking and learning, getting updated information and posting and getting solved their financial and technical requirements.

Mittal added that “The ultimate objective is to create financially sustainable industry associations which will have an action plan, will provide strategic services to its members. Here there is lot to learn from the FPOs, which have reached 44,000 units in a span of 10+ years and providing a variety of transformational services with revenues running into crores.

Earlier inaugurating the National Conclave, Shri M Nagaraju, Secretary DFS, said that India needs to evolve from being production hubs to innovation epicentres in areas of our competitive advantages. Cluster development passes through four stages: of initiation, establishment, operationalization, and transformation. Many Indian clusters are in the establishment or operationalization stage. Industry Associations must become the torchbearers that guide clusters to the transformational stage, where they not only serve local needs but also shape global value chains. Many of our associations lack scale, financial sustainability, and modern service delivery capacity. To truly empower MSMEs, we must invest in strengthening the capabilities of our associations. “Our clusters must transform from industrial hubs into innovation epicentres and our industry associations must evolve from being representatives to becoming catalysts of transformation.”

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In a round table discussion various innovative models like MSME Solution Centre utilizing of services of retired professionals, gain sharing models with workers, elimination of unnecessary documentation, earning royalty from service providers, getting fees by providing very crucial services, etc were identified as newer areas of making Industry Associations self-sustainable.