Viewed mainly as the growth of manufacturing sector as opposed to agriculture and the increased use of inanimate sources of power in the production of goods and services, rural industrialization offers the greatest scope for absorbing the existing and growing labour force outside the field of agriculture. However, rural industrial scene continues to be characterised by the concentration of labour force in agriculture, predominance of traditional crafts, low levels of technology, hereditary mode of production, poor productivity and returns and low labour efficiency and utilisation. Besides glorification of traditional crafts and self-employment, caste-industry nexus, and above all policy bias in favour of agriculture as against industry and large and medium capital-intensive industries as against small village and cottage industries also worked as strong impediments to the development of rural crafts. Drawing from the nationwide experiences, this book examines the problems of the growth and modernisation of rural industries from socio-economic perspectives and probes into the organisational and technology system underlying their production structure with all its implications an ramifications. The reversal of the policy favouring large modern industry sector and the spread of tiny small industries throughout the country with full package of organisational, technical, financial and marketing support in adequate measure have been strongly advocated. In addition, the integration of the development of rural industries with the overall programme of industrialisation was emphasized.

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Small-scale industries in rural areas in China are today an essential element of regional development programs. This monograph analyzes two main development strategies: technology choices in a number of industrial sectors and the integrated rural development strategy.