Indian business clusters have contributed immensely to the country's industrial output, poverty alleviation and employment generation. However, with recent globalization these clusters can loose out to international competitors if they do not continuously innovate and take advantage of the new opportunities that are available through economic liberalization. In this paper, we discuss how information and communication technologies (ICT) can help in improving the productivity and growth of these clusters. Categories and Subject Descriptors K.4.3 [Computers and Society]: Organizational Impact ? Automation, Computer supported Collaborative work, Employment General Terms Management, Design, Economics, Human Factors Keywords SME clusters, India, Emerging markets, ICT