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Abstract
The economic development of any country demands industrialization. Though this is realized in our country, it is high time we thought about balanced regional development, an important component of industrialization. Rural development forms a key component in a nation’s progress towards economic freedom and equality. But the migration of rural people to cities and the ineffective utilization of rural resources stand as hurdles to rural development. Hence it is very important to develop and to encourage rural industries by considering their significance in socio-economic development.Rural or traditional industries, one of the sub-sectors of small-scale industries, have a direct and important influence on sustainable economic development. “Encouraging setting up of rural industries is an instrument for not merely attaining political freedom, but an instrument for economic freedom and a foundation of a new social order it is a matter of common knowledge that India is a land of villages and two-thirds of population lives in rural areas. The future of India lies in the teeming rural millions. It is only from a progressive, growing and dynamic rural society that India can put herself on the desired developmental path. Rural small-scale industries play an important role under Indian conditions.