•  Gained momentum after the Narasimham Committee – I (1991) put forward the broad pattern of the banking sector [3 or 4 large banks, 8 to 10 national banks, local banks and rural banks]. •  Reiterated by the S.H.
An active industrial policy can also help, as firms tend to cluster in industrial groups so as to achieve economies of scale in supplies etc. For example, Ireland actively targeted major IT firms in the 1980s and early 1990s, which has seen a cluster of such IT firms just outside Dublin.