Rural Development in North East India through the Use of Industrial Clusters

Abstract

There is nothing new about industrial clusters. Since Ven Thunen's 1826 Location Theory, Marshal's Industrial District Theory, Max Weber's Industrial Complex Theory, and Michal Porter's Industrial Cluster Theory, it has gone through a variety of economic theories (1990). Many policymakers, academics, and researchers have embraced the cluster idea as a key method for rural development (economic and industrial). Clusters are being used in both established and emerging economies to promote rural small and home businesses, as well as the communities that support them. There are several advantages to focusing on a cluster rather than an isolated enterprise, such as effective knowledge of the area up gradation, developing skills, community empowerment, caste people's empowerment and innovation. Thousands of small & rural businesses run by local communities and diverse castes may be found in the North East. Local resources and traditional skills provided by rural residents of NE are the foundations of these enterprises (e.g., pottery industry, cane & bamboo, brass metal, silk cloth making, Bell metal, Terracotta etc.). Rural households' businesses have provided a long-term source of income for the inhabitants of NE. Despite the efforts of the national and state governments, these rural families' industries in this region aren't operating as well as they should be. Cluster development is a strategy the government (Central) has used to revitalize ailing small and rural enterprises. Productivity, innovative ideas, and forming new businesses all contribute to the firm's competitive edge. On the topic of NE cluster development activities and the impact they have on rural economic and industrial development, this study will focus.