A Cluster is generally identified by the product (or product range) and the place where it is located. A complete industry or a sector (like the leather sector) cannot be referred to as a Cluster. The process of cluster development usually consists of the following steps :-
- Selection of a Cluster Development Agent
- Diagnostic Study
- Preparation of Action Plan for intervention
- Approval of the project and release of funds through leveraging
- Implementation of Trust Building between Cluster Actors and Cluster Development Agent, and also among Cluster Actors
- Monitoring and Evaluation
- Self Management Phase
It is on the basis of the availability of the basic raw materials, etc. required for setting up of a particular industry that certain States and districts are known for a specific group of industries. Accordingly, the examples of some of the major industry clusters are:-
| Product Group |
District/Region |
| Woolen and Cotton Hosiery |
Tirupur, Ludhiana, Calcutta, Delhi |
| Sports Goods |
Meerut, Jalandhar |
| Hand tools |
Jalandhar, Nagaur |
| Glass and Ceramics |
Khurja, Farukkabad |
| Locks |
Aligarh |
| Scientific Instruments |
Ambala, Ajmer |
| Safety Matches |
Sivakasi |
| Bicycles and Parts |
Ludhiana |
| Brass Parts |
Jamnagar |
| Diesel Engines and Parts |
Kolhapur, Agra, Rajkot, Coimbatore, Ghaziabad |
| Electronics |
Mumbai, Pune, Bangalore, Delhi |
| Domestic Electrical Appliances |
Mumbai, Delhi |
| Wall Clocks |
Morvi |
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