Tamil Nadu is among the most industrialized States in India today. The State ranks next to Maharashtra in terms of the contribution of the manufacturing sector to NSDP. The major industries are automobiles, cotton, textiles, rubber, food products, machinery, transport equipment and leather and leather goods.

During the 1980s, the average growth of the industrial sector was 4.52 per cent while during the 1990s the average growth rate increased to 5.35 per cent. However, the industrial growth rate fluctuated significantly from year to year registering growth rates as high as 16 per cent in 1983-4 and as low as -7.4 per cent in 1991-2. Growth rates should become sustained in the future given current policy initiatives.

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