What is the difference between clustering and quantization? The Lloyd-Max quantizer is a scalar quantizer which can be seen as a special case
of a vector quantizer (VQ) designed with the Linde Buzo
Gray (LBG) algorithm.
In k-means clustering, we are given a set of n data points in d-dimensional space  and an integer k and the problem is to determine a set of k points in $R^d$, called centers, so as to minimize the mean squared distance from each data point to its nearest center. A popular heuristic for k-means clustering is Lloyd's (1982) algorithm.
Confusion :

What is the difference between clustering and quantization. I understand the mechanism of clustering technique which is a unsupervised method of grouping data points whereby we map data points into indices of cluster centers which is closest to it. There are different algorithm to perform clustering  - Is clustering another way of doing quantization? Quantization are of 2 kinds -scalar and vector. k-means algorithm is applied for vector quantization. Again k-means algorithm is also applied in vector clustering. So, is vector quantization = vector clustering?
Thank you.
They are essentially the same. The generalized form of the Lloyd's algorithm is LBG which is used for vector quantization (VQ).You may use k-means for the purpose of vector quantization just like the LBG algorithm. In vector quantization, the input space is partitioned into a set of convex areas. They are also referred to as Voronoi regions or cells. If you look at here it says k-means (which is mostly used in computer science) is actually originated from VQ in signal processing as well as pulse code modulation back in fifties. 

If you want to implement VQ, you may directly use k-means algorithm. The original LBG algorithm is presented in the following paper if you are interested:

Y. Linde, A. Buzo, and R. M. Gray, ``An Algorithm for Vector Quantizer Design,'' IEEE Transactions on Communications, pp. 702--710, January 1980.