Facility for International Cooperation for Inclusive and Sustainable Industrial Development

Background

The United Nations Industrial Development Organization (UNIDO) and the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, jointly launched the Facility for International Cooperation for Inclusive and Sustainable Industrial Development (FIC-ISID) in April 2021.

The objective was to initiate, direct and support the inclusive and sustainable transformation of policy and practice for industrial development in India, particularly for the manufacturing and allied sectors through knowledge dissemination, focused learning, and development of projects and strategic partnerships.

These efforts were aimed at supporting India’s achievement of Sustainable Development Goal 9 (SDG9), in particular to increase manufacturing added value (MVA) as a proportion of GDP and per capita.

The inclusive and sustainable transformation of manufacturing and industry will be knowledge and data driven and manifest itself through adoption of improved management practices and techniques by manufacturing firms that increase economic competitiveness (e.g. improved productivity, trade performance, innovation, etc.), better safeguard the environment (e.g. energy, water and materials conserved and waste, effluents and emissions avoided) and more equitably share the created wealth from manufacturing (through better conditions of employment and improved occupational and community health and safety).

To this end, FIC-ISID collected, customized and amassed ISID knowledge, methods, practices, techniques and policies and supported their practical application in India and possibly elsewhere, with India.

FIC-ISID was structured in two parallel and mutually reinforcing facilities:

1. Knowledge and Learning Facility Projects and Partnerships Facility
   FIC-ISID worked to improve awareness, understanding and knowledge on ISID in support of projects, policies and programmes of the Government, private sector and civil society. This was achieved through focused consultations with relevant stakeholders, convening of high-level policy and industry-focused fora and a variety of virtual and in-person training programmes.
2. Projects and Partnerships Facility
   FIC-ISID worked to identify, develop and support practical projects and partnerships for ISID focused on different sectors, topics or regions. These projects comprised specific activities that meet specific needs and requirements of different manufacturing industries, and included support interventions at enterprise, sector and national levels. Each project was expected to identify, customize, transfer and facilitate the uptake of good, inclusive and sustainable manufacturing practices through such activities as technical training, industry and institutional assessments, pilot demonstrations of innovative technologies and practices, support to common support facilities or testing infrastructure and policy inputs.

Objectives

FIC-ISID worked on a wide range of topics, covering different aspects of ISID.These included:
Manufacturing Excellence: Ensuring that manufacturing units are efficient (in their use of inputs, including materials, energy and water), effective (in meeting customer demands) and have mature planning and process controls. It involved clearing out inefficiencies from manufacturing units, conceptualized as Swachh Udyog.

Circular and low carbon economy

Concerning the greening of existing industries and products and development of new ‘green’ industries, products and services, to contribute to efficient use of all natural resources, recovery and reuse of end-of-life products and transition to carbon neutral economy. This was achieved through such established practices as resource efficient and cleaner production, eco-industrial parks, remanufacturing (2 ) and wealth-from-waste cleantech innovation.

Innovation and digitalization

The adoption of new technology, products, business models, etc., including the integration of digital technologies for improved predictive planning and operation of manufacturing operations, leading to Advanced Digital Production.

Trade and value chains

The enhanced participation of Indian manufacturing units, including MSMEs, in domestic and global value chains.

Economic recovery

Recovery and rejuvenation of manufacturing units in the wake of the impacts, including from lockdown, from the Covid-19 pandemic. An online learning and support package has been made available for MSME units, under Building Back (MSME) Business from Crisis.

Outcomes

Overview of FIC-ISID’s activities in April 2021 – March 2022

• 5 high-level ISID dialogues organised

• 12 partner events participated

• 6 project proposals being developed