Induced Industrial Clustering and Efficiency: An Exploratory Study of Gujarat's Industrial Estates

Abstract

Product-specific clusters of small industrial units in advanced economies have demonstrated the efficacy of industrial clustering for economic development. Suggesting that this approach may be of relevance to developing countries such as India as well, the authors here focus on the industrial estates in Gujarat, among the most industrialised states in India, and conclude that even induced clustering, which the industrial estate experiment represents, can lead to collective efficiency, like autonomous clustering in advanced countries.