About the Project
In 2017 Institute for Competitiveness, India joined hands with Institute for Strategy and Competitiveness to lay the foundation for their initiative India Cluster Mapping. The objective was to provide the leaders, businesses, and changemakers in the country with open records on industry clusters and regional business environment to advance competitiveness. It was conceived on the understanding that there has been no systematic statistical cluster analysis at pan India level despite the realization that focus on clusters holds the key to competitive advantage. This indicated a pressing need for defining and analyzing clusters in India that can help businesses and regional policymakers to make informed decisions.
A multi-stage process was followed to reach the final framework for assessing clusters.
- The first stage involved interaction with the Institute for Strategy and Competitiveness team to gain an understanding of the cluster mapping project, its evolution, principles, and methodology.
- The second stage involved mapping the US NAAC industry codes with the Indian NIC codes to arrive at the Indian cluster definitions. After clusters were defined after a comprehensive evaluation was done to understand the role of clusters in the Indian economy.
- The third step involved engagement with key experts and stakeholders to solicit feedback and validation. Among those who provided valuable feedback was the team of experts at PM-EAC and Department of Industrial Policy and Promotion. The team conducted presentations of their work at PM-EAC and Department of Industrial Policy and Promotion.
The project invests in a highly optimized, modern website to enable private and public sector entities to make effective use of the cluster mapping data. This website tool provides a broader data infrastructure that covers cluster presence and performance, as well as several types of data about regional economic performance, business environment quality, and regional characteristics. A key component of the platform is an organizations registry that presents a community network for practitioners to learn about ongoing initiatives across the country and share their best practices.
The entire exercise will help in the policy making process by identifying traded and local clusters present in India, analysing the performance of clusters from 1999 till date, and examining the role of clusters in the Indian economy. If the national level policymakers want to work on some specific clusters then the analysis will help them by providing the details such as the regional presence of that cluster, how has the cluster performed overtime across regions, etc. For regional policymakers, this analysis is beneficial as it will helps them in understanding the clusters that are present in the region, analyse their performance and identify emerging clusters.