The study on “The State of Competition in the Indian Manufacturing” was commissioned to Institute of Economic Growth (IEG), New Delhi. The overall objective of the study was to assess the State of Competition in the Indian Manufacturing Sector. It was also intended to study the state of competition- actual and potential - including three aspects of competition namely structure, conduct and performance, to analyse industry structure to have an idea about actual competition in the sector, qualitative analysis of existing policy barriers and industry/firm level practices that may be deterring the entry of new firms and thus restricting potential competition, and analysis of performance indicators both at firm and industry level. Empirical analysis of the study suggests that there remain many policy regulations acting as barriers to competition. Empirical evidence also indicates that policy reforms that have been undertaken in the Nineties did succeed in triggering dynamic forces of competition reflected in the industry restructuring toward larger scales of operation and consolidation through capacity building and mergers and acquisitions. Market structure, however, did not seem to change much.