Report of Working Group on Clusters and Aggregation

Abstract

Industrial clusters are increasingly recognized as an effective means of industrial development and promotion ,f small sized 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. The research on clusters clearly reflects the advantages of focusing on clusters with positive inter relationships among their stakeholders. Developing clusters is not only a means to improve the competitiveness of industry but also an instrument for alleviation of poverty, generation of sustainable employment, fostering innovation, enabling better credit flow more effectively and sustainably.