Abstract Industrial sickness has been a related factor of industrial development of a state in particular and a country in general. The experiences of the highly industrialized countries well exemplify that along with industrial development. At the same time, these developed economies also have the ability to absorb the economic disturbances brought about by the closure of the industrial unit. Industrial sickness is continuously on increase now has assumed alarming proportions. In this context, the study has taken as conceptualized across the terrain of Andhra Pradesh and encompassed the classification, identification and underlying of the internal and external aspects that drive the industrial sickness across the larger registered companies. The study is to identify the causal relationships across the constituent variables and established the significant cross factor impact as influencing the current state of industrial sickness across the larger enterprises in textile sector.