Growth of Industrial Production in Selected Indian Manufacturing Industries: Is It Productivity Driven or Input Accumulated?

Abstract

The present article attempts to examine the contribution of inputs and total factor productivity growth to the growth of output by considering the aggregate manufacturing sector and seven selected manufacturing industries of India during the period 1979-80 to 2003-04. Major findings of the study indicate that output growth in the selected Indian manufacturing industrial sectors is driven mainly by inputs accumulation while the contribution of total factor productivity growth remains either minimal or negative. The growth rate of total factor productivity in almost all the industries under our study is gradually declining, especially during the post-reforms period. The change in pattern of sources of output growth may have taken place due to liberalization policies and structural reforms undertaken during the 1990s. Copyright © www.iiste.org

Key words: Growth, productivity, input, manufacturing, industry, India.