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Old Time Industries :  In 1648, Karaikal was famous for the special quality guingams (ie. white cloth with small red stripes). These guingams were brought to Pondicherry from where they were exported to Manila. Hence the name Guingam Manila.

Some interesting details about the old time industries in Karaikal are available to us from a report prepared by Cordier, a naval Captain, in reply to a detailed questionnaire received from the Ministere de la Marine. According to this report there were 26 pottery units in Karaikal engaged in the manufacture of utensils, flower pots, water jugs etc.  Some of the units also produced tiles in their kilns.  In the year, 1823, as many as 100 brick kilns and 71 brick makers were counted. The same report revealed the existence of 35 oil mills manufacturing coconut oil, gingili oil, besides producing oil from elipe (bassia longifolia) and laurel seeds.  Of the three soap units, two were located in Karaikal and the other in Tirumalarajanpatinam.

The three coir manufacturers in Karaikal engaged lascars or coolies according to the type of coir to be manufactured.  They used six different types of looms for the purpose.  The work was carried out generally between January and October every year.

INDUSTRIAL DEVELOPMENT IN KARAIKAL REGION : Having high potential industrial and buisiness area and having LARGE SCALE, MEDIUM SCALE and SMALL SCALE Industrial units are established in Karaikal. Government of Puducherry introduced online system for Single Window Clearance for Industrial Registration and Clearance.

One Spinning Mill (JayaPrakash Narayan Co-Operative SPINning Mill) and Gas Power Plant (Pondicherry Power Corporation Limited) has been established and run by the Government of Puducherry UT. ONGC has setup a main office and Central go-down at Neravy, Karaikal. In private concern, Ceramics, Steels, Chemicals, alloys etc., factories are functioning. Such as  Karaikal Spinning Mills, Sri Rajeswari Mills, Soundararaja Mills, Henkel SPIC,  H&R JOHNSON TILES, REGMA Ceramics, Murdeshwar Ceramics, M/s.Chemplast Sanmar, M/s.Godrej Sara Lee, Karaikal Chlorates, Adithya Ferro Alloys, Izaz Thermo Alloys etc.  Karaikal Port (MARG) is being operational at Vanjoor Village.

Industrial Estate : The Rural Industrial Estate, Kottucherry, Karaikal was established in the year 1968 over an area of 7.66 acres of the land. There are 25 sheds and 24 plots of various sizes. There are 18 units functioning in this estate.

ADMINISTRATION: One Assistant Director is the head of office for the Industries department at Karaikal. District Industries Centre is also functioning headed by the Functional Manager.

The Office of the Assistant Director of Industries, Karaikal was started on 5th February 1997 in the Industrial Estate, Kottucherry. The first head of office was  Thiru. S. Thiagarajan. In view of the rapid industrialisation of this region, the administrative machinery was improved by strengthening the set up to cater to the needs of the industries and also to implement the policy of the State Govt. to have a pollution free and eco friendly industrial environment.

Functions and Objectives of the O/o. the Assistant Director of Industries :

The Govt. of India introduced District Industries Centre during 1978. With a view to promote district-wise Industrial development in the Nation. During 1985 a separate sub-office was formed at Karaikal. The first head of office was Thiru. H. Seetharaman. The activity of DIC was to survey the existing traditional and new Industries and also the availability of raw materials and human resources and making arrangements for training facilities in production / management of small units of entrepreneur.

Functions and Objectives of the District Industries Centre :