Page 130 - economic review

Industry and Labour102

State Budget –2014-15- Announcements

3.48 The State budget 2014-15 gives priority to Agriculture Sector, but the following announcements
were in favour of Industry sector: State budget 2014-15 - Announcements

• Programme for the processing of food products to encourage small scale Food Processing
Industries.

• Special Incentives for Women Entrepreneurship Programmes, in continuation of the self
entrepreneurship programme announced in the previous budget.

• Development of Kerala Brand Products in the market ‘Made in Kerala-Safe to Eat’ in the model
of Kerala tourism, in collaboration with CII.

Business Incubators

3.49 A business incubator will be a coordinating organization, which provides an array of business
support resources and services including technology & Infrastructure support, Business Planning,
mentoring support, Financial & Market linkages, etc. for new entrepreneurs who have innovative
ideas, to accelerate the growth and success of entrepreneurial companies. Their aim is to help create
and grow young businesses by providing them with necessary support and financial and technical
services, that could include physical space, capital, management advice, common services, and
networking connections. A business incubator also provides shared access to specialized machinery
and testing equipments.

3.50 A nation wide “District level Incubation and Accelerator Programme” is announced in the
Union Budget 2014-15. Technology Incubation Centres of Kerala are among the best performing
models in the country. Taking a cue from this, Business Incubation Centres will be established in
Industrial/IT sectors to provide additional services by involving experts/successful entrepreneurs in
the field, by the State Government.

Industrial Cluster Development

3.51 Industrial clusters are increasingly recognised as an effective means of industrial development
and promotion of small and medium-sized enterprises. For MSME participants, clusters play an
important role in their inclusiveness, technology absorption, efficiency improvement and availability
of common resources. The Ministry of Micro, Small and Medium Enterprises (MSMEs) adopted the
cluster approach as a key strategy for enhancing the productivity and competitiveness as well as
capacity building of small enterprises.

3.52 Kerala State budget 2013-14 gives importance to strengthening of micro and small enterprises
through cluster development. The Ministry of MSME, Government of India provides financial
assistance for setting up of Common Facility Centers (CFC) in various clusters with Government
of Kerala share through MSME-DI, Thrissur and K-Bip. The CFCs which are in various stages of
development are in the areas of Wood, Plywood, Furniture, Rubber, Terratile, Rice Mill, Plastic,
Printers, Ethnic Food, Agriculture Implements and General Engineering.

Entrepreneurship Development

3.53 The Ministry of Micro, Small and Medium Enterprises (MSME) implements various schemes
to encourage and promote entrepreneurship in the country. These include variety of training and
skill development programmes conducted through MSME-Development Institutes (MSME-DIs),
Branch MSME-Development Institutes (Br MSME-DIs), Tools Rooms (TRs), Product-cum-Process

Kerala State Planning Board