Maharashtra has been focusing on cluster development model i.e. geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions specific to a sector. This is to increase the productivity for investors and bring about a competitive edge in the state. The development and upgrading of clusters is an important agenda for the governments of Maharashtra to bring about a new direction in economic policy, building on earlier efforts in macroeconomic stabilization, privatization, market opening, and reducing the costs of doing business. At present the state already posses’ industrial clusters spread across the value chain in various sectors and regions.