Notwithstanding there has been voluminous concern among the researchers and policymakers, the theoretical predictions and empirical evidences regarding the impact of economic integration on spatial concentration of industries are ambiguous.The paper critically reviews the theoretical and empirical literature on the issue, and presents a case study for India. The findings suggest that following economic reforms in the early 1990s spatial concentration of manufacturing industries has declined in the early years (during 1993-94 to 1999-2000), but it has significantly increased in the last decade.