As around three-fourth of the India’s population is living in vast rural areas. The rural and urban categorization reveals wide disparities in various respects. The division of economic activities between rural and urban areas is one of them. Rural areas specialize more or less exclusively in agriculture while industries are exclusively located in urban areas. Given the weak rural urban or agriculture industry linkages, such a situation suffers from two serious shortcomings. First as agriculture by itself has a tendency to develop at a slower pace than industry, the division of economic activities leads to uneven development. Second since industry generally leads to higher level of output per worker than agriculture, the gap in income levels between those engaged in the two sectors tends to widen. Further, the relationship between traditional agriculture and modern industry generally has a dependency structure which puts the rural sector at a greater disadvantage in appropriating the gains of development and, in turn, increases the disparities between rural and urban income levels. As such, rural areas are ultimately marked be abject poverty and backwardness. In such situation, industrialization is viewed as an effective means of acceleration the process of rural development. Entrepreneurship precedes industrialization.