Resumen
Small and medium enterprises (SME) contribute about 80% of manufacturing employment in India. Rural industrial clusters commonly target the poor countrymen and also set their quality standards to satisfy their local customers. These clusters have proved themselves to be deep rooted sustainable industries. The only threat to these industries is globalization. The competition is becoming even tougher for these rural industrial clusters. This study analyzes the competitiveness of some rural industrial clusters of eastern India in post globalization era. The BUB model has been developed and explained with the empirical data collected from a selected set of clusters in eastern India. Technology upgradation has been found to be more important than any other factor to compete with the foreign companies. This study uncovers the shortcomings of technology spillover through merely B2B relations. The limitations of formal technology transfer training programs under guidance of government service centers have also been discussed.