Micro & Small Enterprises Cluster Development Programme (MSE-CDP)

The Micro & Small Enterprises Cluster Development Programme (MSE-CDP) is an initiative by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. It aims to enhance the competitiveness of micro and small enterprises by fostering the development of industrial clusters. This blog provides an overview of the MSE-CDP and its key components.


The primary objective of the MSE-CDP is to support the growth and development of micro and small enterprises by:

  • Encouraging the formation of clusters to achieve economies of scale.
  • Enhancing productivity, quality, and market access.
  • Facilitating access to technology, finance, and skilled manpower.
  • Promoting sustainable and eco-friendly industrial practices.

Key Components of the Programme

The MSE-CDP encompasses several key components to achieve its objectives:

  • Diagnostic Study: Conducting a detailed analysis of the existing clusters to identify their strengths, weaknesses, and opportunities for growth.
  • Soft Interventions: Providing training, exposure visits, counseling, and other support services to enhance the capabilities of the enterprises within the cluster.
  • Hard Interventions: Developing common infrastructure facilities such as testing labs, training centers, and effluent treatment plants to support the cluster.
  • Market Access: Assisting clusters in marketing their products and services through participation in trade fairs, exhibitions, and e-commerce platforms.

Eligibility Criteria

To be eligible for assistance under the MSE-CDP, a cluster must:

  • Consist of a group of micro and small enterprises located in a geographically contiguous area.
  • Be engaged in the manufacturing, processing, or service sector.
  • Have a minimum of 20 enterprises as members.


The MSE-CDP is implemented through a collaborative approach involving state governments, industry associations, and other stakeholders. The programme is implemented in a phased manner, starting with the diagnostic study, followed by soft interventions, and finally, hard interventions.

Impact and Success Stories

The MSE-CDP has had a significant impact on the development of micro and small enterprises in India. Successful clusters have witnessed:

  • Increased productivity and efficiency.
  • Improved quality and marketability of products.
  • Enhanced access to technology and finance.
  • Growth in employment opportunities.

The Micro & Small Enterprises Cluster Development Programme is a strategic initiative by the Ministry of MSME to promote the sustainable growth of micro and small enterprises in India. By fostering the development of industrial clusters, the programme aims to enhance the competitiveness and productivity of these enterprises.

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