In a vast country like India with varied resource base and socio-economic conditions macro level studies may not throw much light on the problems of all regions. So, more micro level studies for each region are necessary for understanding the prospects and problems of artisan units in different regions of our country. The present study conducted in Kurnool District, one of the drought prone and backward districts of Andhra Pradesh, is a modest attempt in this direction and it throws much light on the problems and prospects of artisans and village industrial units in the District.