Ecology & Economy Integrated Clustering Approaches for Sustainable Development in India

• Published in: Productivity (New Delhi) 2020-03, Vol.60 (4), p.356-376
• Main Authors: Ramachandra, T V, Chandran, M D Subash
• Format: Article
• Language: English
• Subjects: Collaboration; Competition; Competitive advantage; Cotton; Developing countries; Economic development; Economic growth; Economic policy; Economics; Efficiency; Empowerment; Entrepreneurs; Externality; Geography; LDCs; Macroeconomics; Manpower; Natural resources; Prosperity; Self help; Skills; Small & medium sized enterprises-SME; Sustainable development; Towns
• ISSN: 0032-9924; 0976-3902
• DOI: 10.32381/PROD.2020.60.04.2

The concept of economic clustering and trade guilds in India has roots in pre-history. The cocoons and silk processing industry has traditionally existed in clusters, in places such as Banaras, Kancheepuram, Kashmir etc. Cluster-based economic development has become an increasingly popular topic for researchers and economic development professionals. The approach is considered an important aspect of a broader re-orientation of research and economic policy towards laying the foundations of a microeconomic approach for prosperity and growth. The past decades were under the spell of macroeconomics and the creation of market institutions in developing economies. While there is now a fairly broad consensus on the type of macroeconomic and legal conditions necessary to achieve economic progress, it is also becoming clearer that these conditions are not sufficient. As a new approach to help economies reap the full potential of an improved macroeconomic and legal context, cluster-based efforts have received a lot of attention. Clusters are groups of industries and institutions co-located in a specific geographic region (based on availability of natural resources) and linked by interdependencies in providing a related group of products and/or services. Because of the proximity among them-both in terms of geography and of activities-cluster constituents enjoy the economic benefits of several types of positive location-specific externalities. This communication presents integrated clustering of villages for inclusive growth, promoting eco-friendly, local resources, local skill and manpower-based thematic developmental programmes through laying a stronger foundation for sustainable growth. Micro-finance and revival of village-centred enterprises and clustering of villages for thematic development programmes can greatly improve the financial and livelihood security of rural homes, and could provide the largest venues for women empowerment.