This paper examines the structure and functions of Indian Trade Unions in the background of popular notions about the role of trade unions in society. A trade union is essentially on interest group of its members. Consequently one of its basic roles is to act as a conflict group as well as a power group in relation to management and the wider society. The structural characteristics of trade unions are examined in some detail in relation to the response they receive from members, leaders and other groups in the environment. This is followed by a discussion on the nature and effectiveness of trade unionism in India. The organizational and functional weaknesses of Indian unions are explained in terms of historical, cultural and political factors. It is suggested that basic changes in the law regarding trade unions as well as in the people's attitude towards unions are necessary for making them more effective in achieving the primary goals and tasks for which they exist.