Productivity Measurement in the Agro-Based Industries of India

Abstract

In this paper an attempt is made to measure partial and total factor productivity in the agro-based industries of India between the period 2004-05 and 2013-14. Statistical tools such as compound annual growth rate, partial factor productivity indices of labour and capital and solow indices of total factor productivity indices were used to analyze the data. It was found that industry-wise growth of labour productivity indices showed that from the beginning of the period to the end of the period it was maximum for textiles (3.13 fold). The annual trend rates calculated revealed that labour productivity growth rate was statistically significant excepting the manufacture of paper and paper products. It ranged between 2.7 percent and 11.9 percent across the agro-based industries. The partial factor productivity of capital across agro-based industries in India over the reference period indicated that across the period and across the industries changes were mixed (increasing / decreasing). The annual trend rates calculated showed that 4 out of 9 industries recorded positive growth rate. But it is a sorry state of affair that majority of these industries had shown insignificant growth rate. Across the years except during 2005-06, the total factor productivity indices had shown increase at the end of the period compared with initial period. It might be due to the provision of better infrastructural facilities developed in these years across the low technology industries.