In a major push toward decentralised MSME empowerment, the Small Industries Development Bank of India (SIDBI) has launched the Development of Industry Associations (DIA) scheme — a national initiative aimed at nurturing industry clusters by empowering the associations that represent them.
The program was formally inaugurated at the National Conclave on DIA, held on September 24, 2025, in New Delhi. The event was graced by M. Nagaraju, Secretary, Department of Financial Services (DFS), Ministry of Finance, and Manoj Mittal, CMD, SIDBI.
The conclave saw participation from around 125 representatives from 90 industry associations, spanning sectors such as engineering, textiles, plastics, printing, food processing, furniture, jewellery, and electronics — including 8 associations from North-Eastern states.
A dual strategy to empower associations and unlock cluster growth
Under the DIA scheme, SIDBI has laid out a two-pronged strategy to enable industry associations to become strong, sustainable, and service-oriented.
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Direct Support to Associations
SIDBI will provide targeted funding and guidance for infrastructure creation, human resource capacity building, and demand-based interventions — allowing associations to function more efficiently. -
Digital Ecosystem via a New Portal
A dedicated DIA digital portal will enable all registered associations and their members to:-
Conduct industry research
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Collaborate and network
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Access learning resources
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Stay updated with schemes
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Post financial/technical needs and find resolutions
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SIDBI CMD Manoj Mittal noted that this model is low-cost, scalable, and self-propelling, drawing inspiration from Farmer Producer Organisations (FPOs) that have successfully created value-driven platforms over the last decade.
“Strong clusters need strong industry associations,” said Mittal. “Our goal is to build financially sustainable institutions that can deliver strategic services to their members and evolve with the needs of the MSME ecosystem.”
Transforming clusters into innovation epicentres
In his keynote address, DFS Secretary M. Nagaraju emphasised that cluster development is a journey through four phases: initiation, establishment, operationalisation, and transformation.
He pointed out that many Indian clusters remain stuck in the operationalisation stage, and to unlock their full potential, industry associations must evolve from being mere representatives to catalysts of innovation.
“India must move from being production hubs to becoming innovation epicentres. Our clusters must not only serve local economies but also shape global value chains,” Nagaraju said.
He added that the current challenges include limited scale, poor financial models, and outdated service delivery among industry associations — all of which the DIA initiative seeks to address.
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Exploring new revenue models and knowledge exchange
During the roundtable discussions, the conclave highlighted innovative revenue-generation and self-sustainability models for associations, including:
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Setting up MSME Solution Centres using retired professionals
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Introducing gain-sharing models with cluster workers
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Earning royalties from service providers
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Monetising advisory services such as certification, market linkage, and finance access
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Eliminating unnecessary paperwork to boost ease of service delivery
These ideas are expected to guide the future roadmaps for regional industry associations, especially in Tier-2 and Tier-3 cities, where MSMEs form the backbone of employment and production.