Abstract
This study examines the foundry industry of Howrah, West Bengal which is currently characterized by low-technology based production coupled with an attempt to undercut market price via compromises in quality. This is in contrast to the policies of similar foundry industries located in the southern part of the country, e.g. in Coimbatore. A comparison between the two has enabled us to look at the sources of problems faced by the Howrah belt. The study reveals the possible causes of the risk-averse entrepreneurial attitude which led to poor investment growth in this belt.