Punjab needs an industrial cluster in every dist: Experts

Time of India

2 days ago

Ludhiana: Policy experts and industry veterans raised serious concerns about Punjab's underutilisation of flagship schemes aimed at promoting entrepreneurship and MSME development recently.
Sanjeev Chaddha, professor and head of the management development centre at MGSIPA, said there should be at least one industrial cluster per district to support small businesses and local manufacturing. "States like Haryana have 50 to 55 MSME clusters in operation. Southern states are also making full use of these schemes. But Punjab's figures remain negligible," he added.
He introduced several central and state govt schemes that industrialists and new entrepreneurs must make use of.
He also pointed out that Punjab has not implemented even a single project under the ASPIRE scheme, which is specifically designed to promote rural entrepreneurship through livelihood business incubators (LBIs) and technology business incubators (TBIs).
"ASPIRE offers up to Rs 1 crore in grants for setting up rural incubators, 100% support for govt-promoted LBIs, and 50% support for private or PPP models. Many states have used this to boost rural jobs," Chaddha said.
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"ASPIRE has been in 27 states, with 109 LBIs, 1.08 lakh beneficiaries. For example, UP has 13,656 beneficiaries and Maharashtra 9,599 beneficiaries trained. Punjab has no approved LBIs or trained beneficiaries yet," he added.
He was speaking during a capacity building workshop as part of the RAMP (raising and accelerating MSME performance) initiative. It was attended by small entrepreneurs and MSME stakeholders.
Chaddha also explained how the cluster development programme provides shared infrastructure like common facility centres, R&D labs, and training units — especially useful for small and micro industries.
"In Haryana, SPVs (special purpose vehicles) of 50 to 55 small industries have come together to form independent, successful units. Punjab should adopt this model across all districts," he said.
Sanjeev Gupta, former chief GM of SML ISUZU, shared practical challenges and mindset barriers faced by MSMEs.
"Most small entrepreneurs try to manage everything themselves — from GST to production. This limits growth and innovation," he said.
He stressed the importance of delegation, outsourcing, and innovation to reduce production costs. "Even Maruti cannot keep raising car prices despite increasing costs of power, material, and labour. Instead, they improve efficiency, targeting at least 1% cost reduction annually.
MSMEs must adopt a similar approach."
Gupta also emphasised the role of workplace culture and employee ownership models in enhancing productivity. "At Infosys, even drivers and gardeners became crorepatis through Employee Stock Ownership Plans (ESOPs). If employees feel like stakeholders, they stay committed and perform better," he said.
He encouraged entrepreneurs to treat daily product improvement and cost innovation as a continuous process rather than an occasional goal.
Chaddha ended the session with a motivational message for budding entrepreneurs. "Ambani and Adani began from humble backgrounds. The only difference is they fully used every opportunity and scheme available. Punjab's entrepreneurs can do the same."
BOX
PUNJAB LAGGING BEHIND
States like Haryana have 50 to 55 MSME clusters in operation. Southern states are also making full use of these schemes. But Punjab's figures remain negligible
Sanjeev Chaddha, professor and head of the management development centre at MGSIPA
Most small entrepreneurs try to manage everything themselves — from GST to production. This limits growth and innovation.
Sanjeev Gupta, former chief GM of SML ISUZU