The tale of industrialization in the developed countries during the 19th century replicates the rapport between the fast growth of clusters and dynamic endowment. In reality, it was accepted as a general saying that the former always created the latter. Aftermath of World War-II, on the contrary, the association has become ever more disconnected.
The progress of Third Italy recommended that clusters have relocated built-up to greenfield locations. Moreover government's role both local and central in organizing the cluster happening has grown rising weightage.
India's Budget 2006 granted a propel on cluster-based expansion, particularly in the textiles and handloom sector. According to United Nations Industrial Development Organisation's (Unido) report, India has about 70 textile clusters comprising about 80% of textile production. Great clusters in the hosiery segment are found in Tirupur, Ludhiana and Kolkata.
In the power loom segment, major clusters are located in Burhanpur (Madhya Pradesh) and Bhiwandi (Maharahstra) and ready-made garment clusters in Delhi, Chennai and Bangalore.
Silk clusters are in Bangalore and Mysore (Karnataka) and woollen clusters for shawls in Kullu (Himachal) and Amritsar (Punjab).
Cluster dimension in terms of number of units and quantum of production differ considerably. A few of them put in as much as 70% to 80% of the total volume of the same product produced in different regions. Growth rates of these clusters too differ. The relatively new Tirupur Hosiery cluster has shown a big leap over the last 15 years while significance of the over 100 year old Kolkata hosiery cluster has declined.
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