Lucknow.Locus

Locus Analytics, a think-tank based in New York City .. Read more


PROACT is an India-based research and consultancy firm .. Read more

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Locus Analytics is a New York City-based think tank that analyzes large economic and financial data sets using systems models. Lucknow.Locus is one of Locus’ initial international projects that is working closely with a local consultancy, PROACT, and sari weaving communities in Uttar Pradesh, India, to research the composition and dynamics of these economic clusters.

Economic clusters are an increasingly popular concept for both economists and policymakers as they offer new ways of increasing productivity and collaboration amongst firms of varying sizes in specific regions. The input-output classification system created by Locus can contribute to the dialogue on clusters by providing new methods of organizing data to contribute to cluster identification and boundary definition.

Backed by primary research and data collection as well as community engagement, the Lucknow.Locus project seeks to contribute to targeted cluster development programs, the expansion of the organized sector into these clusters, and the improvement and increase in community-led development initiatives.

About the study



The aim of this stage of Lucknow.Locus was to understand the economic lay of the land in the Lucknow region and assess the prevalence of the application of National Industrial Classification (NIC) codes. This was done through a multi-pronged approach of mapping the perspectives of the government, academics and experts, and industry leaders on how the NIC should function to encourage entrepreneurial activity and revenue gains by increasing registration and organization of the national economy. Subsequent to this current scoping assessment, the second stage of the study aims to carry out a well-stratified primary study to generate empirical data on aspects of industry registration & classification, product classification and standards of products & quality. This proposed stage aims to use this current stage to connect and integrate core issues of Indian registration and NIC with respective regulatory and executive roles, functions, and methodological work processes of state and non state actors.


Eventually, the study aims to support community based entrepreneurial activity through the application of a dynamic and robust universal classification system. In the process, we aim to help improve methods and processes of enumerating and registering enterprises, creating a dynamic database, and delineating institutional roles in regulating and executing classification in India.


For more information on Industrial classification standards in India, please refer to the website of the National Industrial Classification (NIC) run by the Ministry of Statistics and Programme Implementation: http://mospi.nic.in . The international version of this created by the United Nations can be found here: http://unstats.un.org/unsd/publication/seriesM/seriesm_4rev4e.pdf

Who participated in this study

Industry : Conversations were held with 11 key representatives from the Indian Industries Association (IIA), Confederation of Indian Industries (CII) and PHD Chamber of Commerce. These were held in individual and group format and the representatives shed light on the industry perspective on classification and database management by the government, their own role in the unorganized sector, and their opinion on the upcoming and lucrative clusters in the region. The conversations were held in both Delhi and Lucknow.

 

Government agencies, departments, and authorities : Officers from the following departments were approached for conversations: National Bank for Agriculture and Rural Development (NABARD) and Public Sector Undertakings (PSU) banks, UPDASP, Ministry of Micro Small and Medium Enterprises (MSME), Rashtriya Mahila Kosh (RMK), National Skill Development Corporation (NSDC), and National Rural Livelihood Mission (NRLM). Out of these, conversations with NSDC and NRLM did not end up working out despite appointments made. 9 officers conversed with us in an informal setting and, based on many years of working with these departments, they were able to give us their professional opinion on classification policy as well as implementation. We were particularly interested in the unorganized sector and its interaction with the NIC. We discussed the NIC and its application methodology, databases maintained by the Government of India, scope for improvement to incorporate the dynamic nature of enterprises, and key sectors that seek deeper assessment and study for classification.

 

Experts and individual actors : Experts and individuals from the following areas were contacted for a conversation: Financial services, industrial finance, para-education, NSDC skill center, leather industry, handloom, and manufacturing SMEs. The 17 individuals who engaged with us were senior members of their respective fields and had a solid amount of on-the-ground experience. The conversations shed light on the outcomes of formal and quasi-formal financial service provisions, behaviour of new entrants through financial inclusion plans, implementation of industrial financing schemes, regulations and problems in the para-education sector, and the understanding of employability and skilling within NSDC and SME areas.

 

Primary observations : Clusters were visited in Lucknow, Kanpur, and Mau. These primary observations cemented our decision to further study the areas of handloom/handicrafts, financial services, education, skilling and employability. Key stakeholders in these clusters were approached and conversed with for a better understanding of the value chain and scope for classification.

Next steps

Once this data collection exercise has been successfully completed, we will move to data analysis using a combination of our theory and customized clustering algorithms. We intend to carry out a comparative analysis between the silk and synthetic sari manufacturing industries within the Mubarakpur cluster to help answer community-generated questions about expanding one without curtailing the growth in revenue and employment brought about by the other. At the same time, we will be using our findings to inform our internal theory of clusters and how they interact with our functional classification system.

We envision these following steps to take place in a Phase 3 of the Lucknow.Locus project,in which we organize and expand upon our findings to work towards our aforementioned goals of community engagement, policy development, and increasing the reach of the organized sector.


Contact

Sandeep Majhi PROACT  
15/ 220, First floor
Indira Nagar, Lucknow, Uttar Pradesh
India – 226016 (+91)
Ph. +91 94150 12006
E-mail : proact.next@gmail.com
Divyanka Sharma Locus Analytics  
179 Franklin Street 3rd Floor
New York, NY 10013,
Ph. +1 (603)-277-0877
E-mail : dsharma@locus.co

PROACT is an India-based research and consultancy organization, undertaking also Monitoring and Evaluation (M&E) assignments of large thematic programs. PROACT engaged with social development themes and contemporary methodologies in research, study, M&E, formative and longitudinal study, and a range of consultancies; contributed to the entire East, North and Central Indian contexts. It contributed to evolving and rolling out of innovative initiatives made as part of state-run development programs (in Uttar Pradesh & Bihar) also making pertinent inputs to operational principles and methodologies.


Locus Analytics, a think-tank based in New York City, develops proprietary classification tools to study and characterize economic systems. Locus has developed a systems-based functional model that revolutionizes the ways in which we explain, compare and analyze the complex entities and interactions that comprise the global economy. We employ this model in a broad base of applications, ranging from economic development to investment analysis. Our goal is to transform the ways that businesses, governments, and entrepreneurs interact with one another to build businesses, communities, and cities.