This paper is based on a research dedicated on using benchmarking as a technique of measuring and improving the performance of clusters like auto component cluster located at Delhi NCR, India. The purpose is to understand the need of benchmarking in general and specifically for such clusters. Second objective of this paper is to sum up the advantages that can be highlighted if clusters are benchmarked. Brief conceptualization of problem of benchmarking of clusters has also been presented in the paper. A review of various other performance measurement of the tools has also been presented. A gist of auto cluster prevailing in India has also been given in this study under the section of review of clusters. At end the most suitable method for benchmarking such clusters is figured out based on the review.