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Impact of liberalisation on productivity performance of textile industry in India: a growth accounting analysis

Author

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  • Seema Sharma
  • V.B. Upadhyay
  • Balram Tyagi

Abstract

The textile industry in India has an important place in Indian economy in terms of its contribution to GDP, exports and its potential for employment generation. Productivity is a key determinant of competitiveness of any industry. In the present study the productivity performance of textile industry in India has been examined for the post liberalisation period using growth accounting approach. Total factor productivity growth (TFPG) has been estimated as a composite measure of input resource utilisation by using Divisia-Tornquist approximation. In addition to that, partial productivity indices (PPI) have also been estimated to examine the efficiency of individual input utilisation. The study revealed that there has been a negative growth trend in total factor productivity during the study period. The partial productivity index for energy has recorded highest gain, whereas, the partial capital productivity has declined over the study period. The raw material and labour productivity have shown moderate gains after opening of Indian economy in the nineties.

Suggested Citation

  • Seema Sharma & V.B. Upadhyay & Balram Tyagi, 2010. "Impact of liberalisation on productivity performance of textile industry in India: a growth accounting analysis," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 5(2), pages 137-151.
    • Handle: RePEc:ids:ijpqma:v:5:y:2010:i:2:p:137-151
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