Considering disaggregated data on Indian manufacturing at two-
& three-digit levels, provided by Annual Survey of Industries
during 1970-71 to 2001-02, a performance related overview is
constructed to observe whether the feat of Indian industries has
generated sufficient growth potential in terms of industrial
output. A dummy-variable approach is adopted here. The study also
focuses on the effects of trade-liberalization policies on output
growth process by estimating break points & examining its
occurrence & persistence level in pre- or post-liberalization
era by employing unit-root hypothesis. For analyzing
cost-competitiveness of an industry, measurement of technical
efficiency is done by employing Stochastic Frontier Production
function approach & extent of total factor productivity growth
is examined by non-parametric approach of Data Envelopment
Analysis. Inter-industrial variation is observed regarding the
explanatory factors responsible for movements of technical
efficiency & total factor productivity growth of different
industries. The policy prescriptions should focus on the specific
broad objectives: whether to endorse efficiency or productivity of
a particular industry.
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