Shrimp has become a popular seafood delicacy across the world. Shrimp is one of the widely traded seafood items and shrimp farming has created huge employment opportunities and gives foreign exchange to developing Nations. Shrimp exports have grown substantially with the introduction of Litopenaeus vannamei in India. The study analyses the economics of shrimp production and the constraints faced by the shrimp farmers in Nagapattinam district of Tamil Nadu. The economic analysis indicated that shrimp farmers have realized average gross returns of Rs.24,48,000 per hectare and average net return of Rs.8,71,038.58 per hectare. Disease problem and high feed cost were the major constraints faced by the farmers in the shrimp production.The results would help the policy makers in formulating suitable programs and devising strategies for increasing production of shrimp in Tamil Nadu.