Inter-state variation in technical efficiency and total factor productivity of India's livestock sector

During last two and half decades (1990–2016), the Total Factor Productivity (TFP) of livestock sector has grown at an annual rate of 3.9%. However, there are significant variations in it across states. It is estimated very high in Tamil Nadu (8.7%), Andhra Pradesh (7.6%) & Odisha (7.6%) and extremely low in Jammu & Kashmir (0.6%), Himachal Pradesh (−0.4%) and Bihar (−4.3%). Interestingly, TFP growth has been driven by technical change. The estimates of scale efficiency indicate scope of raising output by about 30% even at the existing levels of input-use. The findings suggest the need for greater investment in animal science research and development, especially in the states that have poorly performed on technological front.