This paper establishes the index system of industrial agglomeration to make empirical analysis of the level of Chongqing manufacturing industry agglomeration, and study on the relationship between Industrial Agglomeration and Chongqing economy. It is conclude that the Chongqing manufacturing industry agglomeration is obvious, but specialization advantage is not distinct, dominant industry has obvious agglomeration effect. Overall, there is a positive correlation between manufacturing industry agglomeration and economic growth.