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Enterprise Development Centres (EDCs)

Topics Covered:

  1. Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.


Enterprise Development Centres (EDCs)


What to study?

For Prelims and mains: What are EDCs, need and significance.


Context: Union micro, small and medium enterprises sector (MSME) ministry is planning to launch enterprise development centres (EDCs) in every district.


What are EDCs?

Aimed at developing a cadre of indigenous entrepreneurs in the MSMEs, the EDCs will be similar to incubators for start-ups.

They shall be run by special purpose vehicles in partnership with the private sector, business management organisations, local industry associations.


Key features, roles and functions of EDCs:

  1. Offer “enterprise development courses, vocational guidance and skill development for budding entrepreneurs”.
  2. Have “enterprise clinics” for struggling firms, which the government hopes will reduce the number of small businesses falling into a debt trap financed by bank loans.
  3. Offer credit facilitation and syndication, export promotion and supplier inclusion.
  4. Incentives and loans by the government for the sector will also flow through the EDCs, after determining the capabilities of the firm through set parameters.


Sources: the Hindu.