Analysing the linkages among total factor productivity, ICT and skills in India

The purpose of this study is to investigate the linkages among productivity, information technology (IT) capital block, skills and key plant variables of 32 Indian industries for the period of 2009-2015. The author first reviews the key studies focused on productivity, IT capital block, skills and key plant variables and provide key findings. Next, to explain data variation over time, the author employs inductive research techniques, kernel density estimators and Kolmogorov-Smirnov test (KS-test) and compares the outcomes with contemporary growth and development literature. To control the data panel from missing values and possible selection biases, the study employs appropriate econometric techniques. The results indicate that level of IT capital influences the output growth of Indian industries so does the level of skilled labours. Moreover, firms with positive IT capital accumulation result in better debt and liability management. The outcomes also suggest that IT investment of Indian industries is sensitive to the location of plant and type of ownership. However, the author fails to find any impact of gender diversity and contractual labour on output growth. To the author's knowledge, this is the first study that employs descriptive statistical techniques to analyse the nexus among productivity growth, IT capital block, skills and organisation factors by using Annual Survey of Industries (ASI) data which were used by handful studies in the context of India.