De, S. (2025). Post-Reform Dynamics: Growth Trajectories in The Indian Chemical Sector. Ecofunomics, 7(1), 23–39. https://doi.org/10.5281/zenodo.14709261
Abstract
The current study evaluates the Total Factor Productivity Growth (TFPG) of the Indian chemical industry in the post-reform era by employing Non-parametric Data Envelopment Analysis (DEA). The analysis utilizes the CMIE Prowess Database at the firm level for the period from March 1995 to March 2016. The findings indicate a decline in TFPG from 1.004 in 1995-96 to 0.877 in 2015-16, reflecting a 4.6% decrease, with an average TFPG of 0.954 over the study period. Efficiency change is identified as the primary driver of TFPG, suggesting that inputs are being utilized more effectively, contributing to sustainable growth. The determinant analysis reveals that Advertising and Marketing have a U-shaped impact on TFPG, while Research and Development and Net Exports exert a positive influence. Additionally, these strategic variables are significantly affected by TFPG within the Indian chemical industry. The study proposes several policy measures aimed at enhancing TFPG in this sector.
Author
Dr. Sanchita De
Associate Professor
Dept. of Basic Science & Humanities,
 Institute of Engineering and Management,
University of Engineering and Management.
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