Economics and Diseconomics of Cluster based Growth Profile in SME Sector of India

Abstract

Clusters of Micro, Small and Medium Enterprises have been contributing to the eoconomic growth of India for the last several decades. The focus of this paper is to familiarize the policy makers about the economies and diseconomies of cluster based approach and how economies can offset the diseconomies effectively within the sectoral and thematic mandate. This paper provides a rational framework with the help of a model to provide solutions in the form of cluster mapping, devising policies and designing appropriate policies to ensure that the economy can be boosted with CLUSTERS OF HIGH ROAD GROWTH BASED ON INNOVATION AND APPROPRIATE AND EFFICIENT BUSINESS SERVICE PROVIDERS(BSPs)