F A Q's O N C L U S T E R S
What is a cluster?
A cluster is
a sectorial and geographical concentration of micro or small & medium
enterprises (SMEs), faced with common opportunities and threats. Such
a configuration can:
rise to collective benefits, for example through the spontaneous
inflow of suppliers of raw materials, components and machinery or the
availability of workers with sector specific skills.
the creation of providers of specialized technical, administrative and
a conducive environment for the development of inter-firm co-operation
as well as of co-operation among public and private institutions to
promote local production, innovation and collective learning.
many clusters are there in India?
India has largely
two types of clusters, Industrial (SME) Clusters and Artisanal
Clusters. There are around 400 SME clusters and 3500 Artisan Clusters
are Clusters Important in India?
Clusters have been
found to be important in any economy, all over the world. In India
alone they contribute up to 60% of India’s manufactured exports. They
also have a significant workforce and have a high share in employment
are the advantages of clusters?
to an environment of positive competition in the industry. There is an
enhanced co-operation between the industry members and a common shared
knowledge base. It thus helps in building the competencies of all the
people involved in the process. It generally leads to technical up
gradation and improved quality of products. There is also better
market management from the industry members.
is the need for clustering in India?
India is a
developing economy which is moving in a positive direction of economic
growth. But many small industries are lagging behind in this scenario
of growth. Networking such industries into competitive clusters would
lead to :
weak capital base and low scale potential.
decision making among industry members.
responsiveness to industry demands.
more flexible structure.
cost effective team.