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Clusters in India
A cluster is a sector targeted geographical concentration of micro and/ or small & medium enterprises (MSMEs/MSMEs), service providers and institutions faced with common opportunities and threats. In other words, a cluster of MSMEs is a concentration of economic enterprises, producing a typical product/service or a complementary range of products/services within a geographical area. The location of such enterprises can span over a few villages, a town or a city and its surrounding areas. Thus a cluster of MSMEs, hereafter referred to as “cluster”, is identified by the ‘product/service’ that the micro and small enterprises produce and the ‘place’ where the enterprises are located. Foundation for MSME Clusters assists institutions in undertaking cluster based local area development, effectively and inclusively in developing and transition economies.
Features of Cluster:
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Give 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.
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Favour the creation of providers of specialised technical,administrative and financial services.
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Create 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.
Clusters: Some Facts
- Around 400 SME (industrial) and 6000 artisan/micro enterprises clusters are estimated
to exist in India.
- These clusters contribute up to 60 percent of India’s manufactured exports.
- The micro and SME clusters in India are estimated to have a significantly high share
in employment generation.
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