ABSTRACT
A country will achieve the most productive industrial structure by developing a well-chosen combination of large and small manufacturing units, the place of each determined on the basis of economic efficiency. It is essential to distinguish a number of types of small industry, for these different types have very different prospects as a country transforms itself from a traditional, pre-industrial into a modern, industrial economy. Small industry means manufacturing carried on in relatively small establishments. Before giving a quantitative interpretation to "relatively small," however, it will be useful to note some non-quantitative functional characteristics which distinguish small from large industry. The small factory is distinguished from artisan industry by its greater division of labor and the consequent need for planning and coordination. Among the less industrialized countries, India has by all odds the largest, most comprehensive, and the best planned program for small-industry development.
