The economic and industrial clusters are a competitive industrial segment which is the center point of the economic growth. The development of a cluster sector depends upon the social culture of a country. They have become useful in making the huge standard of living for the local people.  
A cluster is also considered as the economical zone where a similar category of products and services are produced and these clusters are definitely recommended for the local and national government policies for government.
To develop the clusters, many CDPs (cluster development programmes) are developed and organized by the local and central government to improve the condition of handicrafts in every area. There are many areas on which the work is to be done for the handicraft sector in industrial development like -
Technological development
Innovative product line reengineering
Manufacturing and production redesigning
new distribution methods implementation
improved financial services and loan facilities

As per for the example -   
Moradabad, which is 170 km away from Delhi, is also known as “Peetal Nagri”. Its whole population is totally dependent on handicrafts and metalware production. Moradabad is at 26th rank in producing metal handicrafts. Alone in Moradabad there are more than 15000 handicraft units which are dedicated for producing the brass handicrafts. There are more than 45000 handicraft personnels in the city and they earn more than 35000 crore rupees annually.

Problems pertaining cluster management -
There are the following problems pertaining cluster management -
high production cost
inefficient resource layout
damage of raw material and quality check problems
limited availability of workpower
inadequate IT support
electricity and manpower supply
These problems are needed to be suggested by the handicraft artisans to the central government. Hope you have liked this post and thanks for reading it !

other reference links -