Trends in Partial and Total Factor Productivity in Cotton Textile Industry

In India, the contribution of textile industry to the creation of employment opportunities or the total industrial production or the export earnings in particular had always been phenomenal. This has triggered the probing into its productivity levels, since productivity is the measure of how effectively and efficiently the resources are pooled together and employed by firms to achieve the desired results. In the present study, an attempt has been made to bring out the trends in partial and total factor productivity indices of cotton textile industry in India and in Tamil Nadu over a period of 30 years from 1981-82 to 2010-11, so as to comprise both the pre and post liberalisation eras. Hence, secondary data has been collected for the entire study period of 30 years. The study's key finding that the labour productivity and capital intensity had registered the positive growth in the cotton textile industry in India and in Tamil Nadu during the study period affirms the results disclosed by Subramanian [2] and Kasi [7].