Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q139: According to the UNIDO and Ministry of MSME definitions, which of the following best describes an "Industrial Cluster"?

A
A group of unrelated industries located in a single Special Economic Zone (SEZ) for tax benefits.
B
A geographical concentration of enterprises producing the same or similar products, facing common challenges and opportunities.
C
A digital network of geographically dispersed companies sharing a common cloud infrastructure.
D
A single large manufacturing unit that outsources its production to multiple international vendors.
✅ Correct Answer: B
Concept Definition: A "Cluster" is officially defined as a concentration of enterprises, mostly Micro and Small, located within an identifiable and contiguous geographical area, producing same or similar products.
Key Characteristics:





Proximity: Units are geographically close to each other.




Similarity: They use similar methods of production, technology, and marketing strategies.




Interdependence: They face common challenges, such as raw material shortage, and common opportunities.
Context: This definition aligns with the UNIDO (United Nations Industrial Development Organization) model.
The core goal is "Collective Efficiency," which means achieving together what individual units cannot achieve alone.