Economic clusters of Bharat: Engines for Aatmanirbhata
Clusters are centres where several units engaged in the same or similar economic activities function together. There can be different clusters engaged in activities such as business, industry, agriculture, trade and services. Such clusters have played, and continue to play, a pivotal role in Bharat’s economic development, dating back to olden times. Clusters are largely initiatives of local societies, with little dependence on the State. They mobilise funds locally, generate employment, grow faster, use local technology, develop low-cost innovations, nurture entrepreneurs and grow independently. They are established to fulfil the needs of people at the local level and beyond, using resources available in their surroundings. Bharat remained a major economic power for several centuries. We have a proud history of more than five thousand years of trade. Studies reveal the role of clusters in the strong performance of our economy and businesses since a long time. Business in the distant past enabled Bharat to emerge as a vibrant exporting nation. Business historian Agarwala writes: “Commerce played a great role in making India the universal exporting centre of the economic world in ancient times.” Commercial cities and trade centres existed more than five thousand years ago. Agarwala further writes: “Commercial cities like Harappa and Mohenjo-daro were founded in the fourth and third millennium BC. Trade centres had also come up in western India in the fourth and third millennium BC….” Earlier Trade Networks Different types of business organisations have been in operation since the earlier periods, reflecting an evolved business culture. Experts note that partnership-type organisations known as pani and modern corporate-type organisations called sreni were functioning around 2,800 years ago. Many manufacturing, industrial, business and trade centres functioned in different parts of the country. Some prominent trade centres included Pataliputra, Mathura, Mithila, Varanasi, Ujjain, Indraprastha, Surat, Bharuch, Tamralipti, Kanchi, Madurai, Kaveri Poompattinam (Poombuhar) and Muziris. These centres were well connected by roads and trade routes. There were two major trade routes, namely Uttarapath and Dakshinapath. Uttarapath connected the Indo-Gangetic plains to Central Asia, covering the northern and north-western parts of Bharat. This route combined land and river transport, utilising the Ganga and its tributaries to facilitate the movement of goods and people. Dakshinapath connected the Northern plains to the Southern parts of Bharat, including the Deccan region and Tamizhakam, linking major cities such as Ujjain and Pratishthana. Feeder roads connected the major trade routes to ports on the Eastern and Western coasts of the country. In Tamizhakam, there were ‘Grand Roads’, known as Peru Vazhi, which connected manufacturing centres with ports on the Eastern and Western coasts. The clusters of earlier times maintained close and direct trade relations with many countries in different parts of the world, including Greece, Rome, Mesopotamia, Palestine, Syria, Egypt, Asia Minor, Somalia, the Middle East, China, Indonesia and Sri Lanka. “Today, we have an average of 4.5 persons per household. If this falls to 2.5 persons per household, as in America, we will need 135 million more houses in India. In America, the number came down from three to 2.5 persons per household, which meant an additional investment of $8.5 trillion for 35 million houses. If we need 135 million houses, there will be no space left in India. What makes us live together? It is sharing. An individual shares his space, comfort and earnings with the family. Where does this spirit come from? It is a civilisational virtue. It has been ingrained in our education, religion, morals and traditional way of life. It has continued for thousands of years” — S. Gurumurthy, Economist and Editor of Thuglak, on September 19,2025, while addressing “Arthayam: A Conclave for Dharmic Model of Development” organised by Organiser Weekly, in association with the National Stock Exchange (NSE) in Mumbai A major reason for the success of ancient trade, both within and beyond Bharat, was the superior quality of products from manufacturing, industrial and trade clusters in different parts of the country. Bharat was renowned for its superior textile products over several centuries. Different textile clusters produced distinctive products of their own. Varanasi was known for its sandalwood and high-quality gold silk cloth. Surat was known for its textiles with gold borders (zari). Dhaka muslin was famous for its fine hand-woven cotton textiles. Many of these products were in high demand in international markets. Kodumanal in Tamil Nadu was a globally recognised industrial and trade cluster, known for its superior-quality products more than two millennia ago. Between the fifth and first centuries BCE, it excelled in diverse industrial activities and maintained trade connections with different countries. It had iron-smelting plants, a bead-making industry and a gemstone industry producing high-quality stones and ornaments. Its wootz steel was a pioneering steel alloy developed in the southern parts of Bharat using sophisticated technology. It was in high demand in international markets and was exported to ancient Europe and the Arab world. The iron-smelting industry flourished in Kodumanal, demonstrating advanced metallurgical skills during that period. Besides vibrant manufacturing, industrial and trade clusters, there were also centres known for naturally occurring products such as pearls, spices and stones, which were in high demand in many countries. Tamizhakam was renowned for these products and exported them in large quantities. Where Cultural Heritage Also Generates Livelihoods Ayodhya, Uttar Pradesh Ayodhya is emerging as one of Bharat’s leading heritage and cultural tourism clusters, with the Shri Ram Janmabhoomi Mandir, Hanuman Garhi, Kanak Bhawan, Ram Ki Paidi and the Saryu Ghats forming the backbone of its tourism economy. According to Government estimates reported in November 2025, Ayodhya’s tourism sector generates annual economic activity of approximately Rs 8,000–12,500 crore, covering hospitality, transport, retail and allied services. Tourist footfall increased from 5.75 crore in 2023 to over 16.44 crore in 2024, while more than 23.82 crore visitors arrived during January–June 2025. The sector is projected to generate Rs18,000 crore annually by 2028 Mathura, Uttar Pradesh Mathura–Vrindavan is one of Bharat’s most significant heritage and pilgrimage centres, as it is associated with the birthplace of Bhagwan Shri Krishna. According to an Entrepreneurship […]
Organiser Weekly·12h ago·1m 
