Efficiency appraisal of Indian shipyards using data envelopment analysis

The shipbuilding industry demonstrates dual nature: the global industry; as well as an industry with a great extent of state intervention. Various factors influence shipbuilding, ship repair and demolition activities and therefore, these activities are found to be concentrated in selected geographical regions from time to time. India has also identified an opportunity to develop its shipbuilding, ship repair and demolition industry. Indian shipbuilding industry was dominated by public sector shipyards till last decade, but presently private shipyards have also emerged as significant players in shipbuilding ship repair and demolition activities. Given this background, it necessitates reviewing the efficiency of Indian shipyards so as to identify the efficient and inefficient shipyards and ascertain the sources of inefficiency. In this context, the paper attempts to estimate the efficiency scores for the 19 major shipyards of India using input oriented Data Envelopment Analysis model to identify relatively efficient and inefficient shipyards and determines the sources of inefficiency for selected Indian major shipyards.