Background/Objectives: There are many changes in the industrial sector by the new industrial policy in India. Industrial productivity needs to be increased to achieve higher efficiency in the use of resources in the coming year.We attempt to study the return to scale of manufacturing industries in Tamil Nadu.
Methods/Statistical analysis: The study is fully based on secondary sources which obtained from Annual Survey of Industry (ASI) during the period from 1980-81 to 2007-8.
Findings: The manufacturing industries are operating under increasing returns to scale in Tamil Nadu. The manufacturing industries contributed a sizeable percentage to total income of the state in Tamil Nadu.
Improvements/Applications: To induce manufacturing industrial growth of the state, proper execution, efficient administration and optimum use of scarce resources are essential and thereby we could attain sustainable growth of a country.