Question

Which of the following statements do not explain the origination of clusters?

• A. Clusters evolve over a long time when artisans settle in one locality and evolve over centuries.
• B. When a large firm is established, a cluster of firms may emerge to take care of its input and service requirements.
• C. Governments may decide to encourage manufacturing using raw materials from a region.
• D. The government incentivises the formation of the cluster to attract foreign companies to the country.

Answer 1

The correct option is D The government incentivises the formation of the cluster to attract foreign companies to the country.

Many small towns host industrial clusters in Tamil Nadu. These clusters specialise in textiles, leather, poultry, coir products, and many more. This has helped Tamil Nadu in diversifying its manufacturing sector.