Government of Kerala has given emphasis on Cluster and Network development activities through the announced Industrial Policy (2003).

The policy lays great emphasis on Cluster development and states that “sector specific clusters of industrial units will be promoted with the assistance of financial institutions and skill development facilitated through common facility centres and training institutions”.

The preliminary survey conducted by the Industries Department prior to the preparation of the tenth Plan document reveal that there are many common opportunities as well as threats existing in the Small Scale Industrial sector and it is essential that certain common strategies are required to overcome the problems.

Intensive training was given to more than 100 officials of the Department, in association with United Nations Industrial Development Organisation (UNIDO), New Delhi, to act as Cluster Development Agents (CDAs).