Agra footwear cluster is a prime example of an artisanal rooted low-tech cluster with predominantly small producers. The cluster has predominantly small scale of operations & the industry thrives on footwear making artisans/ skilled workforce available in plenty in the cluster, but suffers from acute shortage of managerial and supervisory staff with technical qualifications. Footwear in Agra is a very labor intensive industry and almost no mechanization exists.

            In the post quota scenario, since the buyers abroad would have a wider range of choice, critical strategies for the cluster manufacturers for export competitiveness will be shortening lead times, reducing expensive inventories and evolving innovative ways to connect the entire value chain electronically from sourcing of fabrics & accessories to garment manufacturing, and integrating these to final sales. This would require the SME cluster players to develop business processes to implement and manage e-technologies efficiently in order to meet this situation.

            Being close to Delhi, Agra is well supplied in terms of ICT infrastructure. Local ICT support and services are quite ample. However, local Software Expertise is practically non-existent. This reflects upon the poor acceptance of ICT in Agra. There are a few software developers but either the software is generic or very non-specialized in nature. While a number of ISVs exist in the cluster, the level of training provided is not at par with the requirements of the industry. The level of training and trainers is also inadequate. Training both in basic and high end programmes is a big constraint in the Agra cluster. The Footwear industry, as it exists in Agra, remains deeply rooted in traditional methods of manufacturing. Most of the work is done by hand and hardly any mechanization exists. All process control is manual and all records are kept manually as well.

            Action plan of the diagnostic is focused on the following aspects of the Leather & Footwear cluster of Agra.

            A number of footwear & leather institutes are located in the Agra cluster which have good linkages with the cluster actors and are helping towards the enhancement of the competitiveness of the cluster units through various means such as upgrading the knowledge & skills of the existing staff, develop & design products through computerized mode, management of footwear industry etc. Besides, government recognized institutes a number of NGOs are also working in the cluster.

            Industry associations are another important facet of the cluster hand-holding process. Agra leather Footwear industry boasts of two prominent associations viz Agra Shoe Manufacturers Association (ASMA) & Agra Footwear Manufacturers & Exporters Chamber (AFMEC). It is observed that the associations have not been playing a catalyst role in the service of its members or development of the cluster.