The thesis analyzes the importance of the manufacturing for the economic development of the country, as well as the place of industrial policy within the general economic policy. Industry is considered one of the most important activities and growth factors of any (developed) country. An attempt is made to provide insight into the role and importance of industry in the economy, to explore the reasons for this role and importance, and to emphasize the importance of a well-planned and implemented industrial policy in the economy. In addition to the main determinants of industrial work, we will try to highlight the most important changes in the planning of industrial growth and development of the Republic of Croatia, taking into account the European (but also global economic) conditions. The accession of the Republic of Croatia to the European Union and thus the access to the internal market, which allows industrial exchange between member states and other benefits of membership (EU funds, harmonization effects of EU economic policy) are certainly important for the restructuring of the Croatian manufacturing industry. Moreover, a comparative analysis of the manufacturing sector in the Republic of Croatia (hereinafter: the Republic of Croatia) and the European Union (hereinafter: the EU) is conducted through the analysis of relevant indicators of industrial development and competitiveness. The author draws on the scientific and professional literature in the country and abroad, as well as on official publications of the relevant institutions.