In a country like india, rich in man power and resources. Industrialization is very much necessary as an aid to eradicate poverty. Industrialization generates employment, income and promotes GNP. Rapidly growing populations and surplus labour are marked characteristics of indian economy. To absorb surplus labour it is essential to industrialize the country rapidly. For the total manufacturing of 14 indian states which account for more than 80% of the country's value added the assurance region technical efficiencies are computed and the states are ranked. For each of these states shadow prices of the input is computed. The assurance region bounds are setup initializing the observed input prices where the lower bound are efficient prices.