Union Finance Minister Nirmala Sitharaman has urged the Arunachal Pradesh government to implement a cluster development approach to boost productivity and competitiveness among micro and small enterprises (MSEs) in the state. Speaking at a credit outreach program organized by the State Bank of India, she pointed out that Arunachal Pradesh has yet to establish any clusters as recognized by the Ministry of Micro, Small and Medium Enterprises (MSME).

Sitharaman requested Chief Minister Pema Khandu to focus on developing clusters around the 20 geographical indication (GI)-identified products in Arunachal Pradesh. She emphasized that the Ministry could declare these clusters, and the Small Industrial Development Bank of India (SIDBI) could assist in financing these enterprises.

A cluster refers to a group of businesses located in a specific area, producing similar products and services. The MSME ministry promotes this approach to enhance the competitiveness and productivity of MSEs by setting up common facility centers (CFCs) that support their growth.

Sitharaman explained that enterprises in a cluster share similarities in production methods, quality control, energy consumption, and marketing strategies. They also face common challenges and opportunities.

She noted that small industries related to agriculture and allied sectors in Arunachal Pradesh could significantly benefit from the cluster approach. Sitharaman highlighted that the credit outreach program is an excellent opportunity to promote various schemes, including PM SVANidhi, Stand-up India, Kisan Credit Card, PM MUDRA, NRLM-SHG, PM Surya Ghar, and PMEGP.

"Prime Minister Narendra Modi has already launched 17 schemes to provide bank loans without the need for guarantees," she said.

The Finance Minister remarked that obtaining loans was once challenging for entrepreneurs due to banks’ requirements for guarantees. However, since Modi assumed office in 2014, he mandated that every family in India should have a bank account under the Jan Dhan Yojana. She added that Modi's initiatives allow banks to offer loans without extensive paperwork or guarantees.

During the event, Sitharaman also presented an ambulance and a hearse van to the police headquarters as part of SBI's corporate social responsibility (CSR) initiatives and donated 50 bicycles to girl students. Additionally, she launched two financial literacy demonstration vans donated by NABARD and a mobile medical unit for rural medical camps, also under CSR.

Sitharaman distributed sanction letters from banks to various beneficiaries under central government schemes and announced loan disbursements totaling ₹14.41 crore to 160 beneficiaries.

Later, she traveled to Namsai to attend another credit outreach program and inaugurate an SBI regional office.

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