Technical efficiency in Indian public sector heavy engineering goods enterprises

Using Data Envelopment Analysis (DEA) based non-radial and radial measures of technical efficiency the present study evaluates the performance of 25 major public sector heavy engineering goods enterprises over the period of 1990/91 to 2007/08. The empirical findings reveal average technical efficiency in tune to 52.1 percent in the selected public sector heavy engineering goods enterprises. The decomposition of non-radial technical efficiency measure into mix efficiency and local radial measure of technical efficiency reveals that global inefficiency is caused by local technical inefficiency in general and managerial inefficiency in particular. However, mix inefficiency and scale inefficiency are the scant sources of technical inefficiency in the public sector heavy engineering goods enterprises of India.