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A Chronological Exploration of Initiatives in an Automobile Cluster: A Case of Pithampur, Madhya Pradesh, India

2022; Springer International Publishing; Linguagem: Inglês

10.1007/978-3-031-11232-4_19

2522-8722

Pratyoosh Madhavi, Binayak S. Choudhury, Ankit Kumar,

Regional Economics and Spatial Analysis

Industrial clusters are often used as a tool for economic development. The world follows two models under strategies to support industrial clusters. One is Cluster-Oriented Economic Development Plans, much followed in western countries with an intent to integrate cluster strategies into broader Economic Development Plans. The other is Cluster initiatives which are more focused and tailored for specific clusters and are majorly followed in Asian countries. In India, there are many Industrial clusters. Some have historic origins and some are developed deliberately by the government to boost economy of an undeveloped region. Depending on Cluster's needs, the objectives of the Cluster initiatives differ for every Industrial Cluster. Pithampur, in Madhya Pradesh, the case discussed in this research paper, has been developed as an automobile hub in Central India. The development started in the year 1983 in a backward area consisting of villages with an agrarian economy. Apart from proximity to Indore which is a commercial capital of Madhya Pradesh and being logistically ahead, as is in Central India, Pithampur had nothing else as an endowed advantage. The automobile industry was chosen for development considering it to be one of the potential industries to leverage the regional economy. As Pithampur lacked basic infrastructure and had poor economies of scale to attract industries, a lot of effort has been consistently made by the state government to develop and grow it as an industrial town. Though initially, the cluster faced an unfavourable industrial scenario, this cluster survived three and a half decades and has attained a good status as an automobile manufacturing hub in India. Pithampur has seen a complete transformation from agriculture to an industrial economy. The objective of this research is to study the chronological development of Pithampur Automobile Cluster since its initiation, taking into account the different initiatives taken at national and state levels which have contributed directly and indirectly in development of the cluster. The methodology relies on extracting evidences from archival records and expert opinion surveys. This study documents evolution of an automobile cluster in a location that was initially unsuitable for industrial development.