Q86
Indian EconomyIndustry, MSME & Infrastructure
Geographical concentration of industries generates
- a.Horizontal linkage only
- b.Vertical linkage only
- c.Both vertical and horizontal linkages
- d.No linkage effect
Answer: (C) Both vertical and horizontal linkages
When industries concentrate geographically, they generate both types of linkages. Vertical linkages connect firms along the supply chain (input suppliers → manufacturer → distributors). Horizontal linkages connect firms at the same production stage through shared services, information networks, and coordinated marketing. Industrial clusters like the textile industry in Tiruppur exemplify both.