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1、EnhancingCompetitivenessoftheBottomofthePyramid–TheRoleofSmallandMediumEnterprisesandRuralArtisanClustersInIndia.(Prof.V.P.Sriraman,BharathidasanInstituteofManagement,Tiruchirapalli)AbstractThispapertriestoanswerthequestion“IsthereawayoutfortheIndianS
2、mallandMediumEnterprises(SMEs),RuralArtisansandpoorofIndia,inthewakeofincreasedcompetitionfromforeignMultinationalsandliberaltradepolicies?”ThisstudyalsotriestodepicttheplightofruralIndiaandintheprocess,identifiestheopportunitiesthatarethrownopenbythe
3、presentchallenges.Italsobringstotable,someoftheimportantlessonsfromtheUNIDOexperience(fromwhichitheavilydrawsitsreferences)onIndustrialclustersandnetworks.ItdrawsfromtheclustertheoryaswellastheexperiencesofUNIDOtostresstheimportanceofclustersandhencet
4、hecompetitivenessofSMEsandSMEclusters.Theneedofthehouristocreatecompetingrivalriesamongtheclusterpartners(competitionintermsofinnovationandotherdifferentiatorsandnotthroughtheconventional,unhealthyunder-bidding)throughthecollaborationandcooperationamo
5、ngthefirmsinthecluster.ItalsomentionssomeoftheUNIDO’sinternationalexperiencesonclusterdevelopmentandthepossiblelessonsfromthem.Eventhoughtheliteratureofthiskindiswidelyavailableelsewhere,thisstudytriestobringthemtogether.-1-EnhancingCompetitivenessoft
6、heBottomofthePyramid–TheRoleofSmallandMediumEnterprisesandRuralArtisanClustersInIndia“Indiaislivinginitsvillages”–wasafamousquotebyMahatmaGandhi.RuralIndiaiswhere;about72%ofthetotalpopulationisliving.OftheIndia’s2002-03GDPofaround$520billion(at1995pri
7、cesandexchangerates),ruralIndiawouldhaveaccountedfor$193billionworthofIncome,whichistranslating,toabout37%.Clearly,thedevelopmentofthecountryobviouslydependsonthedevelopmentofruralIndia.ThePlightofRuralIndia–Aneyeopener:Abitofstatisticsfrom2001census’
8、datawouldrevealthatthetotalpopulationofIndiaasat0:00hourson1stMarch2001stoodat1,027,015,247persons.Withthis,IndiabecameonlythesecondcountryintheworldafterChinatocrosstheonebillionmark.Thepopulationofthecountryroseby21.34percent,during1991-2001
