Question 16Mention the key factors responsible for the emergence of industrial clusters in India. What benefits do enterprises gain from operating within these clusters?GS3GS1
Mention the key factors responsible for the emergence of industrial clusters in India. What benefits do enterprises gain from operating within these clusters? (Answer in 250 words)
Introduction
With the coming of the SEZ Act, 2005, the industrial clusters are growing in India.
15 words
Main Body
Factors for emergence of industrial clusters:
1Promotion of extensive manufacturing activities - Example: through PLI scheme.
2Hub and spoke mode of industrial development - Example: in industrial cluster in Hyderabad- pharma city.
3To promote ease of doing business, business friendly policies - Example: Decrease in the corporate tax.
4Promotion of the exports - Example: SEZ Act, 2005 to create SEZ focusing on export promotion (GIFT city in Gujarat)
5Increased FDI - Example: Karnataka highest recipient of FDI.
6Increased infrastructure - Example: through dedicated freight corridors, industrial corridors, etc.
Benefits for enterprises:
1Hassle free clearances regime - Example: single window clearances.
2Use of better technology support.
3Plug and play model - this reducing the costs for enterprises.
4With technology, making online access to the resources became easy.
5Can avail huge investments - thus benefiting the country through employment.
6Focused on labour intensive industries - Example: Textile park establishment.
7Increased profit with focus on better practice - Example: Corporate governance.
The industrial clusters some of them in India are- Pune, Ghaziabad, Rangareddy, Salem, Bengaluru, etc.
186 words15 paragraphs
Conclusion
The benefits of industrial clusters should be reaped through Ease of Doing Business.
13 words
- Good use of examples and case studies
- Comprehensive coverage of multiple factors
- Clear categorization of factors
- Relevant to current policy initiatives
Topper
Srujana
2024
Subject & Paper
GS3GS1
Topic
Distribution of Key Natural Resources and Industries
Industrial clusters in India
Factors for emergence of industrial clusters
Writing Stats
214
Total words
15
Paragraphs