The comprehensive economic reform policy statement was formulated for India in July 1991 in the form of industrial and trade sector liberalization. Over the years several measures were undertaken by them for boosting up the industrial productivity. Therefore, analyzing productivity and efficiency changes during the post reform period becomes essential for providing strategic inputs to the producers, the government and other stake holders. Therefore, in this study, an attempt has been made to assess the effects of economic reforms on productivity growth in Indian automobile companies using Malmquist Productivity Index, decomposes the TFP change in to technical and efficiency changes. The results of the study showed that most of the Indian automobile companies must increase their TFP and efforts must be made to provide a stable pattern to the productivity growth. However, the benefits of technological progress were not converted in to productivity gains, as there was no improvement in efficiency in the reform period. The results of the study suggest that there is need for the implementation of specific policies to improve technical progress and efficiency change, in order to precipitate a long-run balance in TFP growth.
Productivity, Scale Efficiency, Malmquist Productivity Index, Indian Automobile Industry, Technology adoption, Managerial Efficiency growth
