MSMEs have become one of the most vibrant sectors of the Indian economy, driving industrial growth and development. These enterprises have also contributed to the industrialization of backward and rural areas. In the north-eastern region of India, thousands of small and rural household industries operate within village communities and among different caste groups. These industries depend on local resources and the traditional skills of the rural population. Rural household industries have been a sustainable source of livelihood for the people of this region. Rural artisans play a vital role in preserving traditional crafts and boosting the regional economy which are crucial to a community's economic stability.  The cluster development strategy has become a prominent paradigm for fostering sustainable livelihoods among the tactics used to improve the performance of such businesses.  This research examines the socio-economic impact of cluster development on rural artisans to earn a sustainable living. The cluster development technique is becoming more and more popular as a way to help Micro, Small and Medium enterprises (MSMEs) become more innovative, productive, and competitive. Clusters provide knowledge exchange, common infrastructure, and group activities by bringing comparable enterprises together in close proximity, which can result in economies of scale and scope. The findings demonstrate that cluster-based development has a positive impact on the socio-economic development of the rural artisans.