Productivity and Role of ICT: A Case of Indian Manufacturing Sector

India's remarkable performance in ICT sector may be inspirational for other Indian industries and more so for other countries in the south, the most important-question is how India has fared in terms of harnessing this technology for enhancing manufacturing productivity. This paper attempts to address this issue by analyzing organized and unorganized sector data set at the firm level and examining the impact of ICT investment and its use on productivity improvement at industry level. The analysis reflects that ICT investment and its use have a positive and significant impact on the output growth of both organized and unorganized manufacturing firms. In this context, where the policy makers are concerned with low levels of growth in manufacturing output, the institutional interventions towards promoting ICT investment and diffusion in the sector would give rich dividends.