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In this paper an effort is made to measure the productive efficiency of aggregate manufacturing sector in Tamilnadu in the liberalized regime for the reference period from 1991-1992 to 2011-2012. A stochastic frontier production function model was applied to analyze the data. The summation of the elasticities of factors of production, indicated return to scale of 1.287. Since the value of return to scale was greater than unity, one percent increase in inputs (labour and capital) resulted an increase 1.287 percent in output level for the stochastic frontier. In terms of technical efficiency, the manufacturing sector in Tamilnadu recorded an average efficiency of 0.939 (93.0 percent). It was also revealed that the technical efficiency of industries in Tamil Nadu have not shown any decline but showed mixed trend. The average technical inefficiency was observed as 0.065, which was negligible. In order to reduce the inefficiency in future, and become more efficient the manufacturing sector can increase output using the existing resources or by reducing costs given the current level of production.