Original Research

Productivity, technical progress and scale efficiency in Indian manufacturing: Post-reform performance

Ewert Kleynhans, Valarmathi Pradeep
Journal of Economic and Financial Sciences | Vol 6, No 2 | a271 | DOI: https://doi.org/10.4102/jef.v6i2.271 | © 2018 Ewert Kleynhans, Valarmathi Pradeep | This work is licensed under CC Attribution 4.0
Submitted: 27 June 2018 | Published: 31 July 2013

About the author(s)

Ewert Kleynhans, School of Economics, North-West University, South Africa
Valarmathi Pradeep, School of Economics, North West University, South Africa; and Society for Integrated Coastal Management, Ministry of Environment and Forests, New Delhi, India

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Abstract

This article studies the effects of the economic reforms on the Indian manufacturing industries. Data Envelopment Analysis was used to estimate technical and scale efficiency changes after the 1991 reform initiatives. The estimates suggest, however, that the efficiency of manufacturing industries declined during the post-reform era. The variations are different across industries, and the findings demonstrate the importance of technological progress for improving manufacturing efficiency and productivity in India.

Keywords

India; reforms; Malmquist approach; industry; manufacturing; efficiency; productivity

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