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Cluster is a geographical location (5 km radius) having 50 or more manufacturing or service providing units of interrelated and interdependent firms along with their backward and forward linkage industries. Manufacturing or service providing firms are co-located and experience unique strengths, weaknesses, opportunities and threats in a cluster. Clusters could be naturally grown due to the availability of raw materials, skilled labor, historically inherent professional uniqueness etc. reasons. On the other hand government or concerned agencies may establish a pre-planned co-located cluster of a particular sub-sector in a specific place. Where firms are co-located and linked with each other through the value chain of a particular product. Clusters, either naturally grown or man-made, require development interventions in different phases to perform better than its existing situation. Cluster development interventions could be different based on specific needs of a cluster.
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