Purpose – The purpose of the study is to study the relation between new product development (NPD) innovation and NPD best practices in an organization with respect to NPD performance in the backdrop of Indian manufacturing industry. Design/methodology/approach – Performance indices are developed based on NPD innovation and NPD best practices in an organization. Based on the developed performance indices, a cluster typology or classification of surveyed organizations is conducted. Different hypotheses are generated and tested to chet1ck the relation between NPD best practices and NPD innovation in an organization with respect to NPD performance in the Indian manufacturing industry. Findings – The following results were obtained: there is a positive effect on NPD performance for those organizations that strongly implement NPD best practices; the stronger the NPD innovation, the higher the NPD performance; and stronger organizations’ ability for NPD innovation has positive relationship with NPD best practices. Hence, it is proven that, “the stronger the NPD innovation in an organization, with defined NPD best practices, the better the NPD performance”. Originality/value – According to the author’s knowledge, no study is reported in literature which addresses the effect of NPD best practices and NPD innovation in an organization with respect to performance in the Indian manufacturing industry. © 2014, Emerald Group Publishing Limited.