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Productivity in public sector industrial undertakings: the Indian scenario

Author

Listed:
  • S. Mohanan
  • Philip Varughese

Abstract

The productive performance of public sector undertakings has been the subject matter of considerable discussion, criticism and controversy. It is a well recognised fact that effective management and development of public sector undertakings under the government of India can contribute considerably to achieve the socioeconomic transformation of the nation. The objective of this paper is to measure Total Factor Productivity (TFP) in public sector industrial undertakings under the government of India in order to gain insight into the level of efficiency with which the resources have been utilised. Data were collected and subjected to analysis for the periods from 1997 to 2006. A total of 92 industrial undertakings falling into 7 industrial categories were taken into consideration for this study. They are steel, petroleum, fertiliser, chemical, heavy engineering, transport and textile industries. This study analysed the productivity by TFP indices. TFP indices like Solow, Kendrick and Translog have been used for this study. Industry wise analysis has been done under the three methods. Exponential growth rates have been calculated to assess the growth rates of TFP.

Suggested Citation

  • S. Mohanan & Philip Varughese, 2009. "Productivity in public sector industrial undertakings: the Indian scenario," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 2(6), pages 602-624.
    • Handle: RePEc:ids:ijicbm:v:2:y:2009:i:6:p:602-624
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