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Technical Efficiency In The Indian Textiles Industry: A Non‐Parametric Analysis Of Firm‐Level Data

Author

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  • Anup Kumar Bhandari
  • Subhash C. Ray

Abstract

The Indian textiles industry is now at the crossroads with the phasing out of quota regime that prevailed under the Multi-Fiber Agreement (MFA) until the end of 2004. In the face of a full integration of the textiles sector in the WTO, maintaining and enhancing productive efficiency is a precondition for competitiveness of the Indian firms in the new liberalized world market. In this paper we use data obtained from the Annual Survey of Industries for a number of years to measure the levels of technical efficiency in the Indian textiles industry at the firm level. We use both a grand frontier applicable to all firms and a group frontier specific to firms from any individual state, ownership, or organization type in order to evaluate their efficiencies. This permits us to separately identify how locational, proprietary, and organizational characteristics of a firm affect its performance.
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Suggested Citation

  • Anup Kumar Bhandari & Subhash C. Ray, 2012. "Technical Efficiency In The Indian Textiles Industry: A Non‐Parametric Analysis Of Firm‐Level Data," Bulletin of Economic Research, Wiley Blackwell, vol. 64(1), pages 109-124, January.
    • Handle: RePEc:bla:buecrs:v:64:y:2012:i:1:p:109-124
    DOI: j.1467-8586.2010.00381.x
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    Citations

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    Cited by:

    1. Siddharth Shankar Rai & Sunil Girib, 2019. "Assessment of supply chain agility in the Indian garment industry," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 9(10), pages 265-280, October.
    2. Nguepi Tsafack Elvis & Hua Cheng & Buregeya Ingabire Providence, 2022. "The Illustrative Understanding on the Informal Sector and Its Influence in Firm Productivity in Sub-Saharan Africa (SSA): Evidence from Cameroon," Sustainability, MDPI, vol. 14(15), pages 1-22, August.
    3. Anup Kumar Bhandari, 2021. "Withdrawal of the multifibre agreement and Indian textile industry: Concerns, efforts, and achievements," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1397-1436, August.
    4. Duong Phuong Thao Pham & Duc Huynh & Kim-Linh Le & Thao-Anh Le, 2025. "Factors Affecting the Support of Industrial Businesses’ Performance in Vietnam’s Digital Economy," Sustainability, MDPI, vol. 17(17), pages 1-23, September.
    5. Anup Kumar Bhandari & Vipin V, 2018. "Does Export Intensity Affect Firm Performance? Evidence from Basic Metal Industry in India," Working Papers id:12767, eSocialSciences.
    6. Khar Mang Tan & Fakarudin Kamarudin & Bany-Ariffin Amin Noordin & Norhuda Abdul Rahim, 2019. "Firm Efficiency of East Asia Countries: The Impact of Board Busyness," Vision, , vol. 23(2), pages 111-124, June.
    7. Zarkovic, Maja, 2020. "Cap-and-trade and produce at least cost? Investigating firm behaviour in the EU ETS," Working papers 2020/12, Faculty of Business and Economics - University of Basel.
    8. Md Awal Al Kabir & Abu Rashed Osman & Shah Mohammad Mazeedul Hoque & Jeremy Brown & Shah Md Safiul Hoque, 2025. "Non-parametric analysis of technical efficiency: factors affecting efficiency of handloom industry of Sirajganj district," SN Business & Economics, Springer, vol. 5(5), pages 1-20, May.
    9. Sarker Jewel & Jongyi Hong & Chaechang Im, 2022. "Innovation Strategies for Textile Companies in Bangladesh: Development Using Quadrant Analysis Based on a Productivity Index," Sustainability, MDPI, vol. 14(24), pages 1-15, December.
    10. Anup Bhandari & Pradip Maiti, 2012. "Efficiency of the Indian leather firms: some results obtained using the two conventional methods," Journal of Productivity Analysis, Springer, vol. 37(1), pages 73-93, February.
    11. Anup Kumar Bhandari, 2010. "Global Crisis, Environment Volatility and Expansion of Tthe Indian Leather Industry," Working Papers id:2500, eSocialSciences.

    More about this item

    JEL classification:

    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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