Abstract

The industrial cluster is not a new phenomenon. It has evolved in a process after passing through number of economic theory developed, starting from location theory in 1976 by ven Thunen, marshal’s industrial district theory (1979), max Weber’s industrial complex theory (1950). The cluster concept has attracted many policy makers, academicians and researchers as a vital strategy for rural development (economic and industrial). Today, the developed and developing economy implementing cluster concept as an instrument for the development of rural small and household industries and also for the development of communities related to these industries. Generally, the cluster concept suggests a change in the units of analysis from isolated firms to a network of firms, which have an advantage of effective local knowledge up-gradation, skill development, empowerment of local community, caste people and innovations