Factors Affecting the Size of Industrial Units in India

In studying the efficiency of industrial organization in India the question whether in each class of industry the individual units are of a size that is capable of securing the maximum efficiency is of great practical importance. For unless in each industry the representative firms are of such a size that the cost of production per unit of output is as low as possible, the efficiency of the industry within the country and its competitive power outside will be seriously affected. Unfortunately, however, although theoretical considerations can point to certain broad conclusions, the difficulty of finding a correlation between the size of industrial units and their efficiency is increased by the existence of many complicating factors that render the task extremely hazardous.