Cluster analysis for exploring regional industrial scenario in Odisha state, India

Published ArticleThis study assesses the current industrial scenario using cluster analysis, and explores plausible perspectives for location of apposite industries in the geographical region bounded by the river valleys and flood plains of the State, Odisha state. Different clusters of industries are concentrated in different areas of the state. Most of the industries in small scale industries (SSI) sector are found to be ubiquitous. Majority of the industry categories available in the region have significant vertical (both backward and forward) linkages among themselves implying availability of significant potential for growth of industries in the region. Simultaneously, a number of industry categories, particularly electrical and electronics, engineering and metal, and steel and iron industries have predominant horizontal linkages resulting in severe competition and mutual repulsion within and among each other. There is a necessity to limit horizontal linkages among and within the industry categories in order to avoid competition for the long term sustainability of industries in the region. Besides, exploring of complementary relations based on the vertical linkages is essential while deciding the location of industries in the region so that they could become self reinforcing and sustainable