The Howrah foundry firms form one of India's oldest clusters of industries and once considered a flourishing industry of the state of West Bengal, India. However, over the last twenty years or so we observe a state of stagnation especially with regards to investment. It appears that for a large number of firms, technology upgradation has been almost negligible for a period of time. This study based on a field survey examines the present structure of this industry characterized by low-technology based production coupled with an attempt to undercut market price via cost reduction brought about through compromises in quality. This has been in contrast to the policies of the industry located in the southern part of the country, e.g. in Coimbatore. A comparison between the two has shown that labour-entrepreneur relationship at Howrah plays a crucial role in determining the current state of the industry.