INDUSTRIAL CLUSTERS, TECHNOLOGY ADOPTION, AND EMPLOYMENT OUTCOMES: EVIDENCE FROM THE TMT BAR AND IRON MANUFACTURING SECTOR IN INDIA
Author(s): Dr Ashfaq Ali, Dr Mohd Arif
Publication #: 2602004
Date of Publication: 15.02.2026
Country: India
Pages: 1-7
Published In: Volume 12 Issue 1 February-2026
Abstract
This study examines industrial growth and employment dynamics in the Thermo-Mechanically Treated (TMT) bar and iron manufacturing sector of Muzaffarnagar district, Uttar Pradesh, through the lens of industrial cluster theory, skill-biased technical change, and MSME-led regional development. Using a mixed-methods approach, primary data were collected from 60 manufacturing units and workers through structured surveys, key informant interviews, and focus group discussions, supplemented by secondary policy and industry sources. Quantitative analysis reveals a strong positive relationship between production scale and direct employment, while higher levels of technology adoption reduce labour intensity without diminishing total employment, indicating a shift in labour demand toward semi-skilled workers. Qualitative findings highlight that cluster-level constraints—particularly weak institutional coordination, inadequate shared infrastructure, skill shortages, and power supply instability—limit the translation of output growth into improved employment quality. The study extends industrial cluster theory by demonstrating that employment outcomes depend not only on geographic concentration but also on governance capacity and collective facilities. It further contributes to skill-biased technical change literature by providing district-level evidence from an MSME-dominated manufacturing cluster in a developing economy. By integrating employment quantity and employment quality into MSME performance assessment, the study offers a conceptual framework with broader applicability to regional industrial clusters in emerging economies.
Keywords: Industrial clusters; TMT bars; iron and steel industry; MSMEs; employment quality; skill-biased technical change; regional development
Download/View Count: 23
Share this Article