Cluster is defined as a geographical concentration of micro, small & Medium (adjacent villages/ adjoining areas) producing similar products and common opportunities. Cluster represent the socio-economic heritage of the state/ region where some of the group of villages known for the specific products or a range of complementary products that has been existence for long time. In a typical cluster, such producers belong to a traditional community producing the varieties of traditional products for generations (Basketry, Furniture, mats, Handloom, Agarbatti, jewellery, musical instrument etc.).
The cluster-based approach is market driven, inclusive, and collaborative. It offers critical mass for customization of interventions, enables economies of scale in operation, cheaper access to inputs & raw materials, better access to information & technology and direct reach to customers & channels.