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Industrialization is the central dynamic force for most countries. It has been a key growth and development objective of India's planned economy, with the focus on heavy investments made in this sector. Labour productivity is highest in manufacturing industries; this has assisted in raising national income at a faster pace. It is a pre-condition for the development all economic sectors including agriculture. The importance of industrialization in economic development is crucial for a growing economy with a larger population like India. Progress and prosperity through industrialization have been a long term strategy for the Indian government, communities, and businesses. Being reliant on agriculture and having a large population base has made India. Industrialization enables India to utilize its scarce resources optimally, diversify the economic base, raise the living standard of people, and thus attain the balanced regional development through fiscal incentives and subsidies concessional finance for industrially backward regions.Tamil Nadu is a highly industrialized State but this development has taken place only in a few districts.