We discussed the Weberian methodology of ideal types and definitions of capitalist and family farming in Chapter 1 and of structural transformation (ST) in the following one. Chapter 3 provided an insight into the interaction between the agrarian ST and the development of third tier urbanization in India. We will now proceed to examine the main hypothesis of this book saying that the agrarian transformation in India is likely to lead to an increasing predominance of family labour farms (see “The competitive advantage of family farms” on pp. 12-14).