Clusters as Growth Engines – How NPC is Supercharging MSMEs in Those Tier-2 Cities
In the big picture of a “Viksit Bharat 2047” , the real action has long since moved away from those chaotic metros and onto India’s newest “Next-Gen Cities” – think Jaipur, Nagpur, Indore, Coimbatore and more. At the very heart of this shift is the National Productivity Council (NPC) – right now getting ready to observe National Productivity Week 2026 (12th to 18th February).
The theme for 2026 – “Clusters as the Growth Engine: Unlocking Productivity in MSMEs” – is more than a catchline. It’s a whole strategy that’s turning a bunch of separate, small units into global competitors to be reckoned with.
The Power of That Cluster Model
So when you group businesses that are all connected within a specific geographic area – or even just a value chain – you get a whole lot more than the sum of those individual businesses. For an MSME in some Tier-2 city, “going it alone” is usually way too costly. The NPC’s cluster model gives them the teamwork needed to bridge that gap and level the playing field.
1. Access to Some Pretty Awesome Infrastructure (CFCs)
Individual small units in Kanpur, or maybe Bhubaneswar, often just can’t afford high-end gear. Through the Common Facility Centres (CFCs) , the NPC lets them share the cost of :
- CNC Systems and CAD/CAM Tools: Top-notch for precision manufacturing.
- Testing Labs & Quality Control: Not just nice to have, but essential for getting those export standards ticked off.
- Prototyping Labs: So new businesses can innovate without throwing the kitchen sink at it upfront.
2. Maximising the Value Chain – Making it Super Efficient
According to that latest report from NITI Aayog (2026) , the NPC-led cluster interventions have produced some pretty impressive results (10-15% productivity growth and 20-30% turnover increases for participating units). By working together and sharing the costs of logistics and raw material procurement, these clusters can tap into the “economies of scale” that were previously just for the big corporations.
Tier-2 Cities – The New Hotspots of Innovation
You can see the impact all over India’s emerging industrial hubs:
- Nagpur: That Readymade Garment Cluster has helped over 1,000 women through shared training and some pretty fancy machinery, doubling the local export capacity.
- Jaipur: The leaders in IT and tech-integrated MSMEs – and they’re using the NPC’s “Information Convergence” to break down those digital barriers.
- Sangli: The Turmeric Cluster has seen its export value more than double thanks to some NPC-facilitated modernisations.
The Green Revolution in Productivity
Nowadays, productivity’s not just about speed, it’s about being sustainable. The NPC is putting in place “Eco-industrial Clusters” that focus on:
- Cutting Energy Consumption: Reducing the carbon footprint of units that gobble up power.
- Waste Management: Making sure there’s a steady supply of raw materials by implementing the circular economy.
- Green Skills: Training up those in Tier-2 cities for the renewable energy and EV supply chains.
Conclusion: From Little Local Units to Global Winners
NPC’s cluster strategy is basically levelling the playing field for MSMEs. They’re providing Tier-2 businesses with the same tools, tech and knowledge that Tier-1 hubs already have. So geography no longer limits a business’s ambition. As we celebrate National Productivity Week 2026, the message is clear: When MSMEs grow together, India grows faster.
