Report of the Working Group on Clustering and Aggregation for the 12th Five Year Plan

Abstract

Industrial clusters are increasingly recognized as an effective means of industrial development and promotion of small and medium-sized enterprises. Cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities (external economies). The issue has gained immense popularity among the policy makers as a very important tool of intervention. Enterprises can better improve their competitiveness due to the presence of specialized suppliers of raw materials, parts and components, machinery, skills and technology as well as other supporting services.