Industrialization is a process of transforming an economy from agriculture dependant to reliant on manufacturing. Today, only 20 percent of the global population resides in 63 “industrialized” economies.On the other hand, industrialization/ manufacturing growth has a huge impact on developing countries as it is one of the key factors of sustainable development, and, the most important factor of sustainable development is generating constant employment.India has experienced the process of industrialization since independence. However,the availabilityof human and physical capital and at timeslimitations in policy decisions have made the process of industrialization slow which had led to a further impact on employment. Recent Government policies to create more capital within the economy and make India more investment-friendly for manufacturing have become a global talk. In this regard, it is highly encouraged to take up various issues and analyzethe effectiveness of the manufacturing sector for India which still has a 75% of labor force working in the informal sector.