The Foundation for MSME Clusters was conceptualized to contribute towards this process of cluster based development of MSMEs and thus enhance their competitiveness, generate sustainable employment and alleviate poverty. At the suggestion of the Ministry of Small Scale Industries, Government of India, the United Nations Industrial Development Organisation (UNIDO) conceptualized and initiated the process of creating the Foundation for MSME Clusters. Subsequently, the Foundation was legally constituted as a non-government, non-profit registered trust under the auspices of the Entrepreneurship Development Institute of India (EDI), Ahmedabad, in the year 2005.