India lags in cluster formation

Delegates at the annual conference of the Institute of Competitiveness elucidated the importance of cluster economy in developing nations

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Sonam Saigal | December 2, 2010



Cluster formation is the best way to boost competitiveness and bring innovation. However, India, with some exceptions like that of automobile and IT cluster in Gurgaon, media in Noida and apparel in Delhi, has failed to do much in this regard.

This was the message that came out at the annual global conference organised by The Institute for Competitiveness in Gurgaon on Wednesday.

The biggest problem is at the policy level and nobody is trying to frame the regulations, said Sandeep Mann, board member of Institute for Competitiveness.

"Our enterprises are not very contractually driven, we don’t have a global vision and we don’t have the urge to rise in the global market. It is very difficult to make all the people at different levels see through a single lens. India has a long way to go,” he added.

Michael Enright, director, Enright Scott and Associates, and former professor at the Harvard Business School spoke about global competitiveness, its challenges and role of clusters.

“The world is changing with many emerging markets coming up. However markets are also submerging, leading to disruption of clusters. Clusters are changing beyond recognition. The worse hit is the exports where there are no markets, no customs and productivity in the clusters can be copied away overnight,” he said.

Cluster formation is very important for the local economy, citing China's example where industrial clusters drive the economy in regions, he said.

Developing countries have to learn to exchange, penetrate and focus on the content of knowledge, he concluded.

Delegates from other countries also spoke on the issue.

The delegate from Jordan spoke about building the competitive advantage where clusters are used as a source of prosperity.

The Senegal representative said his country  was coming up with its first national competitiveness report.

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