This paper identifies barriers to energy efficiency in energy-intensive, small-scale industry (SSI) clusters in India. The field data from the foundry cluster in Belgaum and the brick and tile cluster in Karnataka are reviewed. Barriers are prioritized based on the perceptions and experiences of entrepreneurs and the main stakeholders of SSIs. The financial and economic barrier, and the behavioural and personal barrier, emerged as the top two impediments to energy efficiency improvements. Policy implications for removing barriers are discussed.