Cluster Development in India

SMEs and Indian Clusters

Small industries have tended to concentrate in the vicinity of large industries or in metropolises and big cities. This "spatial concentration" of the SMEs of a certain product is called Cluster. The pull of the market, availability of physical and social infrastructural facilities and skilled labour have been major considerations. Large public sector / private sector undertakings have encouraged the growth of small-scale industries in those areas where (e.g. Bangalore, Rourkela, Ranchi, etc.) ancillary units and auxiliary services have come up. Over the years, small units have exhibited significant growth in some new towns and cities. Government support programmes, entrepreneurship, raw material availability, improved infrastructure, increasing demand and many other factors have contributed to this phenomenon. A major aspect of "spatial concentration" of SMEs is that various types of clusters of different product lines have come up as under: 

·                     Woollen & Cotton Hosiery - Tirupur, Ludhiana, Calcutta, Delhi

·                     Sports Goods - Meerut, Jullundhur

·                     Handtools - Jullundhur, Nagaur

·                     Glass and Ceramics - Khurja, Firozabad

·                     Locks - Aligarh

·                     Scientific Instruments - Ambala, Ajmer

·                     Safety Matches - Sivakasi

·                     Bicycles & Parts - Ludhiana

·                     Brass Parts - Jamnagar

·                    Diesel Engines and Parts - Kolhapur, Agra, Rajkot, Coimbatore, Ghaziabad

·                     Electronics - Bombay, Pune, Bangalore, Delhi

·                     Domestic Electrical Appliances - Bombay, Delhi

·                     Wall Clocks – Morbi