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Synopsis This book is the outcome of the research work conducted in the Department of Economics, Bharathidasan University, Tiruchirappalli. Industrial economics is one of the most important branches of the discipline of economics. This branch has been growing over the period through contributions made by several researchers in various parts of the recent parts of the country. However, research works in the recent past are scanty. Therefore it is necessary to bring out reserch studies in the form of a book with updation, which may serve as reference matrial for student and reserch scholars as well. Authenic data from the annual survey of Industry were used, besides the valuable insights gained from the industrial experts. While presenting an analytical and critical accounts of theories, review and interpretation, care has been taken to treat the subject matter systamatically and lucidly so that an average student can easily understand the content of this book.