Productivity and Technical Efficiency Performance of the Indian Textile and Apparel Industry: Application of Deterministic Production Frontier Model
Year: 2026
Type: article
Abstract: : This study examines the production performance of India’s textile and apparel industry estimating a Cobb–Douglas production function via the corrected ordinary least squares method in cross-sectional data sourced from the Annual Survey of Industries, 2023–24. The estimated elasticity of labour (0.614) and capital (0.340) confirm that it is a labour-intensive industry. A mean technical efficiency of 0.898 indicated that this industry operated below its best-practice frontier. Among sub-industries, wearing apparel performed the highest technical efficiency (1.00), while spinning, weaving and finishing recorded the lowest (0.819). The capital productivity differentials among sub-industries indicate resource misallocation, particularly in upstream segments. Keywords: Cobb–Douglas Production Function, Frontier Analysis, Indian Textile Industry, Technical Efficiency JEL Classification Number: D24, L67, C21, L60
Authors: Swaran Lata Meena, Aarti Suryavanshi
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7202042440
