In 2006, IIE has been assigned the role of a technical agency in assisting the development of a large number of clusters in the eastern and north eastern region of the country under the scheme called the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) sponsored by the Ministry of Micro, Small and Medium Enterprises, Government of India. The Khadi and Village Industries Commission (KVIC) is the Nodal Agency for the programme. The programme is being implemented by different NGOs.

   As a technical agency, IIE imparts training to the officials of the Nodal Agencies, Technical Agencies and CDAs on cluster development methodologies. It also provides guidance and handholding support in conducting diagnostic studies and preparation of five-year action plans. Through diagnostic studies, the various major cluster specific problems/weaknesses are identified.