This paper focuses on the impact of India's economic reforms on industrial structure and productivity. Growth and Structural changes in manufacturing industry in India over the 1980-81 to 2001-02 periods were analysed in this paper. The discussion was based on the ASI data and covered both two and three- digit level of industries. Our analysis of relative industrial development in India level. The performance of manufacturing sector in India was quite low during the period. This however, is not only the result of exogenous factors, but also the consequence of the type of policies being followed under economic reforms. If mistakes were made in the past, they need to be corrected. But efforts should be made to ensure that demand is high enough for more output to be produced, more people to be employed, poverty to be reduced.