The Karnataka government proposes to set up a cluster for the construction sector to help localize manufacturing of fittings, hinges and other material to limit imports, help boost investment, and further channel its focus into labour-intensive micro, small and medium enterprises (MSMEs) to insulate itself from the economic uncertainties.

The construction cluster follows the cluster-based approach of the state government aimed to increase the contribution of manufacturing to the state’s growth and is part of Karnataka’s ambitious “compete with China policy".

“From fittings to hinges to other requirements of construction, everything will be made available on one platform," said a senior government official, requesting not to be named.

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The aim of the construction cluster and other labour intensive MSME focus would help boost manufacturing in a state that has seen small industries,1 like auto components manufacturers, take the biggest hit in the current economic slowdown leading to loss of jobs and working hours.

• 1. “Chinese home fittings are almost 40% cheaper and many unregistered contractors use them to bring down costs. However, these are not durable," said S. Shivaprakash, chairman, Karnataka chapter, Builders Association of India (BAI). There are local options for hinges, fittings and other material, but Chinese alternatives have seamlessly entered the market. Other finished goods such as wardrobes, wood flooring, and sanitary products are also in high demand.