Indian Economy·Policy Reforms
Cluster Development Approach — Policy Reforms
Constitution VerifiedUPSC Verified
Version 1Updated 5 Mar 2026
| Entry | Year | Description | Impact |
|---|---|---|---|
| MSME Development Act Amendment | 2018 | The amendment expanded the definition of cluster development to include digital clusters and service sector clusters, not just manufacturing. It also introduced provisions for cluster development agencies as permanent institutional mechanisms and emphasized environmental sustainability in cluster development. | This amendment broadened the scope of cluster development beyond traditional manufacturing, enabling support for IT clusters, financial service clusters, and other modern service concentrations, while ensuring institutional sustainability. |