Abstract
Over the past 3 decades India has emerged as the 2nd largest producer and consumer of steel globally, as its domestic crude steel production capacity expanded by a multiple of 6.5, from 22 million tonne in 1990–91 to 142 million tonne in 2018–19. Competitiveness of the Indian steel industry, measured by total factor productivity growth over the past 3 decades, however, does not indicate a significant break from the decade prior to the economic reforms of 1991. The Translog index shows a lower growth for the entire period following 1991, and improves marginally only for the period 2002–03 to 2017–18. Partial productivity, both for labour as well as capital, shows an improvement for the period of study. Of the structural change parameters for the industry, trade integration and change in technological route of production emerge as significant variables impacting total factor productivity index.
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Acknowledgements
I would like to acknowledge the benefit received from suggestions of my former professor, Dr. K L Krishna regarding the empirical work on TFP. I would also like to express my gratitude to Prof. Arup Mitra for patiently listening to my approach and giving very useful suggestions on how to develop the paper. I would like to convey my thanks to Professor Saboohi Nasim, and the anonymous reviewers & the editors of JGBC for improving the paper by their incisive comments and suggestions.
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Kumar, S. Structural Changes and Competitiveness of the Steel Industry in India: Assessed by Productivity Growth post Economic Reforms. JGBC 16, 39–50 (2021). https://doi.org/10.1007/s42943-021-00024-w
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DOI: https://doi.org/10.1007/s42943-021-00024-w