The production function is purely a technical relation, which connects factor inputs and outputs. It describes
the laws of proportion, i.e., the transformation of factor inputs into outputs at any particular time period. The
production function represents the technology of a firm or an industry, or the economy as a whole, and it
includes all the technically efficient methods of production. In this paper, an effort is made to estimate
production function in the aggregate manufacturing sector of southern states for the reference period between 1991-
92 and 2010-11. The results assessed the importance of skilled labour component in the states such as Karnataka,
Andhra Pradesh and Kerala. With regard to the type of technology adopted by the states, it could be observed that
the manufacturing sector of Andhra Pradesh, Karnataka and Kerala were adopting labour intensive technology
since the co-efficients of wage (β2) was greater than capital co-efficient (β1). The manufacturing sector of Tamil
Nadu was known for capital intensive technology based on the co-efficients(β1>β2).