Chapter 4: Analysis of Efficiency and Total Factor Productivity Growth of Indian Pharmaceutical Industry Using State-Level Data

This chapter investigates the performance of the Indian Pharmaceutical Industry (IPI) using state-level data. It looks at the performance of pharmaceutical industries in major Indian states. For doing that it estimates technical efficiency and total factor productivity growth (TFPG) of Indian states. This chapter helps to compare the Indian states as well as to identify the position of the states in the IPI. This chapter attempts to find out the factors affecting TE and TFPG of IPI employing data on 17 major selected states of India. Another important contribution of this chapter is that it verifies the presence of structural breaks (which may appear due to changes in economic regime over time) in the TFPG series at the state level by using panel structural break methodology.