This paper examines the role of structural and regional factors in explaining the observed trend and pattern of Kerala's industrial growth experience. The category of structural factors has here been broadened to include not only industrial composition but also variations of the industrial sector in terms of its organisation-household industries, organised industries, and size of factories. It is the author's contention that regional factors have retarded industrialisation in Kerala. If the regional factors had not been so adverse, the structural factors should have in fact raised the rate of industrial growth in Kerala above the all-India rate.