Abstract

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.

Keywords: ecology, environment, clustering approaches, sustainable development