The role of the macro environment and firm-specific characteristics in improving the resource use efficiency of the Indian food processing industry

This paper estimates the resource use efficiency of the Indian food processing industry and investigates the factors that explain the possible variations in the resource use efficiency across firms and over time. Findings from the four-stage semi-parametric DEA analysis indicate low resource use efficiency because of both macroeconomic conditions and firm-specific characteristics. The results have significant implications for the food processing industry in promoting the industry in the longrun. Emphasis on regional policy, managerial decisions and efforts to improve the working capital turnover with consideration to quality standards are vital.