Abstract
In this article, the author attempts to clarify the actual condition of traditional industries and the main trends in their changes, giving a definition of their relation with modern industry. First, the author presents a definition of traditional industry, then shows statistically that small‐scale industry is mainly composed of traditional industries. Second, the author investigates the existing forms of small‐scale industries in terms of groups and areas, using the results of the National Sample Surveys. The detrimental factors impeding the growth and transformation of traditional industries into modern small‐scale industries are also examined. Third, the author tries to clarify the reasons why the traditional industries have strongly competitive powers vis‐à‐vis modern industry and why they have continued to exist.
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