In 2006 TIFAC initiated this program aimed at providing R&D and Technical support to select clusters of MSMEs through an approach based on establishing and leveraging academia-industry interaction. 

The approach of TIFAC MSME Program starts with a comprehensive assessment of technology needs and gaps of the cluster followed by the design and implementation of targeted technical interventions for the particular cluster by the academic / R&D institutions that act as knowledge partners.  The interventions include product / process technology improvement, testing and quality issues, and training / capacity building.

In drawing up of Comprehensive Plan for Technical Interventions in the clusters, initiatives have been grouped in two sets. First generation (relatively deliverable in a short time frame – low hanging fruits) to ensure short term benefits to the cluster and also to keep their faith and interest in the Program alive, and second generation which would take some more time to bear results but very crucial for their sustenance and even relevance over a longer time frame.

The following clusters have been chosen for intervention:

• Casting (Howrah, West Bengal – Ferrous),
• Surgical instruments, (Baruipur, W.B),
• Food Processing (Malda, West Bengal)
• Sports Goods (Jalandhar, Punjab),
• Diesel Pumps (Rajkot, Gujarat),
• Agricultural Implements (Karnal, Haryana),
• Scientific Instruments (Ambala, Haryana),
• Rural Pottery (Panchmura, Bankura, W.B., Khurja, U.P.),
• Carpet Industries (Bhadohi, U.P.),
• Hand made Paper (Sanganer, Jaipur, Rajasthan),
• Rubber Cluster (Agartala, Tripura)