The cellular manufacturing (CM) has been proved as a well-known manufacturing strategy that helps to improve manufacturing efficiency and productivity by utilizing the philosophy of group technology. Large number of papers has been published in the area of design issues of CM system. Unfortunately, the issues related to acceptability of CM in Indian industries are typically not examined rigorously as technical issues. This paper presents the results of a survey carried out to find the status, enabler and barrier of implementing CM system in Indian industries.