S R Shiva Subramaniam

UM4050

Chennai, India's fourth-largest city, saw a post-independence economic boom in manufacturing and has developed as a Auto IT Hub. This research analyzes the city's industrial clusters, focusing on automobiles and IT/ITES. It explores how concentrating firms in these sectors can both boost efficiency and innovation (agglomeration economies) and create downsides like rising costs (disequilibrium). Combining data analysis with interviews, the research uses Porter's Diamond Model to assess competitiveness. The findings aim to inform policymakers and industry leaders as Chennai expands its metropolitan area.