In recent years, the manufacturing sector in India has attracted a great deal of attention from policy makers. This book highlights some of the factors responsible for the changing pattern of growth and employment in India's manufacturing sector. The study shows that physical and social infrastructure is crucial for the growth of an economy due to its effect on the growth and productivity of manufacturing. Similarly, the rise in agricultural labor productivity is a major factor causing the shift of workers from agriculture to manufacturing through the demand generated for manufacturing products by increases in agricultural incomes. In contrast, large capital-labor ratios in organized manufacturing are associated with a slowing down of the shift of workers from agriculture to manufacturing. Out of the various infrastructure variables studied, increasing road length is found to be the most effective way to increase the number of factories in rural areas. Investment in rail routes, electricity, and credit leads to an increase in manufacturing income in rural and urban areas. Improving the level of education also increases income in urban organized manufacturing.