SOME CRITICAL DIMENSIONS OF INDUSTRIAL DEVELOPMENT Productivity

8.97 Economic growth crucially depends on gains in productivity. Total factor productivity (TFP), defined as the ratio of a volume measure of output to a volume measure of total input use, measures the efficiency with which labour, capital and other inputs are combined to produce output. There are vast differences in approaches of measurement of manufacturing productivity with regard to the method of estimation, measurement of outputs and inputs, resulted arrived at and interpretation of results. Reflecting these differences, the studies on productivity growth in Indian manufacturing during different time periods have thrown up varied conclusions. 8.98 While many studies have pointed toward