About Clusters:-

Clustering Approach to manufacturing competitiveness is today a popular concept

and achieved national significance in India since 2004. This approach focuses on
helping manufacturing enterprises particularly the Small and Medium Enterprise
sector to become lean and at the same time absorb and implement skills which will
lead them to becoming globally competitive manufacturing enterprise.

The goal of cluster development is to increase competitiveness of small and medium

scale enterprises through organised agglomeration human-centred initiatives. This
implies that inputs and support services become increasingly space-bound and more
closely targeted in such a way that enterprises in an agglomeration are able to tap
both internal and external economies. They provide not only an incubator for
competitiveness, but also a platform for business alliances. They help enterprises to
specialise, attract suppliers and buyers, spread ideas and the capacity to innovate,
and most importantly, engender co-operative action through mutual sharing and
learning.

In this approach 8-12 companies, mostly small and medium enterprises (SME’s) but
at times large enterprises too, come together to learn, share experiences and solve
problems. Traditionally the approach has been applied to manufacturing enterprises
hailing from the same sector. Examples include auto component sector, light
engineering and leather industry. But cross sectoral clusters are known to be as
successful.

A cluster is a group of not more than 8-10 companies who agree to follow the
discipline of the cluster approach for mutual learning and sharing. The participating
companies have a common set of goals spelt out in the key indicators and they
undergo an agreed roadmap over a period of 12 months, 18 months or two years.