With a view to provide all assistance to Small Scale Industries under one roof Government of India designed a pattern namely District Industries Centre during 1978. The District Industries Centre Thanjavur is functioning from 1.10.1979, Thanjavur District was bifurcated as Thanjavur and Nagapattinam District with effect from 18.10.1991. Valangaiman Panchayat Union area originally with Thanjavur District has been merged with newly formed Thiruvarur District with effect from 1.4.1997.

Thanjavur District comprises of 3 Revenue Divisions consisting of 8 Taluks with 14 blocks and 3 Municipalities. Thanjavur continues to be predominately an agricultural district and no wonder that it has been identified as an industrially backward district on the basis of Annual Survey of Industry (ASI) conducted during 1987-88. Out of fourteen blocks and three municipalities 11 blocks and one Municipalities are declared as backward/ most backward areas except Budalur, Orathanad and Papanasam blocks and Thanjavur and Kumbakonam Municipalities.

During the decade two sugar Mills one in Co-operative Sector at Kurungulam in Thanjavur Taluk, another one in private sector viz. Thiru Arooran Sugar Mills at Thirumandankudi near Kumbakonam were setup. More than 3 Modern Rice Mills run by Tamilnadu Civil supplies corporation and one Food Corporation of India have also been setup. One spinning Mill is also functioning in this District. In addition one Sugarmill at Kottur village Thiruvidaimaruthur Taluk has been setup during this decade.

Out of 14 blocks in this district 11 blocks have been declared as either industrially backward or most backward as such there is a great scope for the development of Small Scale Industries in this District. There are four Small Scale Industrial estates in this district. Three in Thanjavur and one in Kumbakonam. It is reported that 59 Units in Thanjavur (Nanjikkottai road) and produce chemical, Bakery, and polythene bags. There are 10 BHEL subsidiary units in Pillayarpatti, Thanjavur Taluk 27 units at Thirupuvanam in Thiruvidaimarudur Taluk producing polythene, Chemical and rubber products. The industrial estates are controlled by Small Industries Development Corporation of Taminadu Sidco which is also supplying paraffin wax (Type II) to SSI units.

From early days Thanjavur has been a flourishing centre of cottage industries and Handicrafts like Handloom cloth and cotton Sarees which are renounced and still established. Mat weaving is spread over a number of places but the superior varieties of Mats are made in Vilankudi Chakkrappalli and Madukkur. Ornamental fans are made out of palmyrah leaves and they are artificially painted and decorated with silk threads. This district is also famous for a wide range of utility and decorative articles like Thanjavur bell Metal plates, bronze images bowls, napkins and powder boxes etc made of bronze and copper images with inlaying and engraving work of motifs drawn from Hindu Mythology done in Silver etc known as "Thanjavur Swamy works" chief centres of Metal work are in Kumbakonam and in Nachiyarkoil. This district is equally well known for its pith works consisting of beautiful models of Hindu idols, temples, Mosques, Garlands, bouquets, Parrots and peacocks. The flower garlands and bouquets are much demand during chiristmas days. Pith is growing on the river beds in Thanjavur and Kumbakonam taluks. The manufacturing of musical instruments from jack wood like Veena, Tambura, Violin, Mrithangam, tabela and Kanjira exhibit excellent taste, knowledgte and workmanship. The jack wood has a special quality for producing musical sounds. Thanjavur, Kumbakonam are well known places for the manufacture of musical instruments.

Handloom industry occupies an important plce in the economy of Thanjavur District as it provides livelihood for more than 60,000 people in this district. It is reported that the number of looms in Thanjavur stood at 13233 of which 10662 looms comes under co-operative sector. This district stands formost in the varieties of the handloom fabrics woven in silk cotton and lace in the designs of the pattern and the artistic workmanship exhibited. Silk weaving is mainly carried on in Thanjavur and Kumbakonam.. There are 25 cooperative handloom societies functioning in this district. Silk sarees produced by Thirubuvanam cooperative silk society with Gold Lace cost from RS. 2000 to Rs. 15,000 and these sarees are very popular all over the country. The Government have introduced a saving and security scheme for the members of handloom weavers co-operative society through which the Government is paying Rs.50,000/- and the State cooperative Society Limited is providing Rs.10,000/-to the legal heir of the deceased under the self insurance scheme.
The Government sanction a sum of Rs. 53,000/- including Rs. 25,000/- as subsidy for construction of houses to the weaving members under House-cum-workshed scheme. The children of the handloom weavers are getting subsidy for higher education from a trust formed in memory of late Chief Minister, Dr. M.G.Ramachandran. In order to encourage and promote Handloom Industry, Government is providing yarn at subsidised rates and also gives rebate for sale of handloom clothes through co-optex units on the occasions of national importance.

TRADE AND COMMERCE

The trade of the district mainly consists of rice, fish, handloom, Metal works and handicrafts. The item of import chiefly consist of silk and cotton yearn, brass sheets, copper, timber and other consumer goods. The trade is carried on both by rail and road. Regarding surface transport, most of the exports and imports passes through the ports of chennai and Tuticorin. To help the trading and commercial establishment there are in all 166 bank branches function in various parts of the district during 1999-2000.