Clusterisation and its Impact on Firms and Labourers A Case of Textile and Clothing Industry in Tiruppur

Abstract

Modern societies and nation-states face persistent pressure in maintaining economic growth and gainful employment for its citizens. Technological disruptions threaten one or the other and forces policy makers to look for robust systems which promise higher levels of output and maintain (if not increase) employment levels at the same time. This is achieved by constant upgrade of technology and worker skills. This demands industry to remain flexible and yet specialise in production activities. Some industrial clusters, due to geographical, historical, cultural and structural reasons have been able to achieve high levels of flexible specialisation. This thesis attempts to understand the features of a cluster and how it is manifested on the ground. Tiruppur, a textile and clothing industrial cluster will be explored for the defining characteristics of a cluster. To aid this research, interviews were conducted with senior management or entrepreneurs of textile and clothing firms. Based on this, gaps will be identified and prospective pathways and interventions are briefly touched upon. Additional focus is given to institutions which have played an important role in shaping the cluster.