As cities rapidly become more populated, people are living in an unplanned way with inadequate roads and other amenities because of financial and geographical constraints. The process of urbanization inevitably involves urban sprawl, which can be managed as best as possible. Improvements are needed in older city settlements because of urban growth and expansion, especially in industrial cities. Sivakasi is renowned for its industrial development and has a history of development based on industries. Consequently, the urban core has a greater number of both non-hazardous (Printing and Packaging) and hazardous (Fireworks and Matchworks) industries. The problem is to reduce the congestion caused by the industries located inside the city and to give way for better urban growth in future. The aim of this thesis is to analyse the impact of strategic planning (SP) in city development, as well as to identify which strategies, in the context of planning, can be used for achieving local economic development. A review of the appropriate literature was conducted for that purpose. Various regions were used as case studies in the researched papers. Studies showed that regional development and strategic planning are positively correlated. More precisely, it was discovered that strategic planning aided in the economic growth of the examined region, suggesting that it is a useful instrument that local governments can employ to improve the performance of their areas. With respect to the context of Sivakasi, it is essential and better suited to employ various strategies in enhancing the economic and urban growth. It is anticipated that the results will show which tactics, which have been utilized in other nations and have been discussed in scholarly literature, can be applied in Sivakasi Municipal Corporation to achieve local economic development goals.