Industrial Clusters in India: Evidence from Automobile Clusters in Chennai and the National Capital Region

Okada Aya and Siddharthan N.S.

No 103, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This study analyzes the patterns of agglomeration of some modern manufacturing sectors in India, and in particular the Indian automobile sector. It also examines and contrasts the factors that have led to different patterns of cluster development in two leading auto clusters in India-Chennai and the National Capital Region (NCR). Moreover, the study analyzes whether firms in clusters perform better than those that are excluded and whether the relative importance of variables that determine the behavior of firms differs among clusters. Our analyses, which employ a combination of quantitative and qualitative methods, show that Indian industrial clusters are largely concentrated in the three clustered regions: NCR, Mumbai-Pune, and Chennai-Bangalore, across different manufacturing sectors. Our study of the auto clusters in Chennai and the NCR find considerable differences in the patterns of cluster formation, due partly to the historical and policy conditions under which firms, particularly, the lead firms must operate. Moreover, our econometric analyses confirmed that being part of a cluster positively influences the performance of the auto component firms and those belonging to a cluster perform better.

Keywords: Industrial clusters; Automobile industry; Spatial distribution of industry; India; Industrial estates; 産業クラスター; 自動車産業; インド; 工業地帯 (search for similar items in EconPapers)
JEL-codes: L62 O14 R12 (search for similar items in EconPapers)
Date: 2007-04-01
New Economics Papers: this item is included in nep-cwa, nep-dev, nep-geo and nep-ure
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Citations: View citations in EconPapers (4)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 103. 2007-04-01

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