• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing:  ProQuest, Crossref, Electronic Journals Library , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2011 Vol.2(2): 161-165 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2011.V2.96

Industrial Cluster: An Approach for Rural Development in North East India

Rinku Das and Ashim Kumar Das
Abstract—The industrial cluster is not a new phenomenon. It has evolved in a process after passing through numbers of economic theory developed starting from Location Theory in 1826 by Ven Thunen, Marshal’s Industrial District Theory (1920), Max Weber’s Industrial Complex Theory (1950) and Industrial Cluster Theory by Michal Porter (1990). The cluster concept has attracted many policy maker, academicians and researchers as a vital strategy for rural development (economic and industrial). Today, the developed and developing economy implementing cluster concept as an instrument for the development of rural small and households industries and also for the development of communities related to these industries. Generally the cluster concept suggests a change in the units of analysis from isolated firms to a network of firms, which have an advantage of effective local knowledge up gradation, skill development, empowerment of local community, caste people and innovation etc. In North East thousands of small and rural households industries are operating among village communities and different caste. These industries are based on local resources and traditional skills available with the rural people of NE (e.g. cane and bamboo, pottery industry, silk cloth making, brass metal and Bell metal, Terracotta etc). Rural households industries have been acting as a sustainable livelihood for the rural people in NE. In spite of various attempts by the central and state government these rural households industries in this region are not performing up to the mark. To give new life to the existing small and rural industries the government (Central) has adopted the policy of cluster development. This will provide competitive advantage to the firm in three different ways, namely productivity, innovation, and formation of new business firms. This paper will highlight on the cluster development initiatives in NE and their implication on rural economic and industrial development.

Index Terms—industrial cluster, productivity, innovation.

Rinku Das, Research Scholar,Department of Humanities and Social Sciences, NIT Silchar, Assam, India (email:rinku.nil@gmail.com ).
Ashim Kumar Das, Assistant Professor, Department of Humanities and Social Sciences, NIT Silchar, Assam, India (email:ashimkd_nits@rediffmail.com).


Cite:Rinku Das and Ashim Kumar Das, "Industrial Cluster: An Approach for Rural Development in North East India," International Journal of Trade, Economics and Finance vol.2, no.2, pp. 161-165, 2011.

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