Total Factor Productivity of Manufacturing Sector in India: A Regional Analysis for the State of Haryana

The present study used different categories of organized sector manufacturing industries pooled data for the periods of 1981-82 and 2007-08 in Haryana state (India). The present undertaking seeks to analyze the inter-temporal and inter-industry comparison of total factor productivity (TFP) measured by Malmquist productivity index - an application of DEA which calculates the indices of TFP and its components including technology and efficiency changes. The general development pattern observed by the Haryana is definitely not a healthy sign of structural change in the economy. The analysis of the discussion reflects that while the tertiary sectors have maintained its lion’s share inGDPof India and Haryana as well, the declining trend in the share of primary sector and more or less stable contribution of the secondary sector is noticeable. The study reveals that technical efficiency change is the key driver of TFPG in the manufacturing sector of Haryana during pre reforms period, however, the picture has turned around during the post reforms period. A positive impact of liberalization policy on technological advancement of the manufacturing sector of the state has been experienced. The post reforms period the state has shown the inefficiency in the utilization of resources in hand as an alarming sign indicating the incapability of manufacturing sector of the state in question in dealing with the level of technological advancements.