Technical Efficiency in the Informal Manufacturing Enterprises: Firm level evidence from an Indian state

The small and medium enterprise sector plays a pivotal role in the socio-economic development and growth of nations. But there is evidence that the firms in this sector are less efficient than those in the large enterprise sector. Hence it is imperative to examine their efficiency levels in order to identify the factors that contribute inefficiency in these firms and to generate information for designing support policies for them. In this study, level and sources of technical efficiency in the unorganised manufacturing sector in the Indian state of Kerala is examined using translog stochastic frontier production function. The analysis is conducted for five broad industry groups and the sector as a whole using firm level data. The findings show that high levels of technical inefficiency, which reduce their potential levels significantly, characterize the unorganised manufacturing enterprises in Kerala. Regarding the factors contributing to inefficiencies, it is observed that size, ownership, region (location) and nature of seasonality of operation significantly influence technical efficiency level in most of the industry groups. We also find that credit availability and employment of hired labour play an important role in explaining technical efficiency levels.Technical Efficiency; Stochastic Frontier Production Function; Unorganised Manufacturing Sector; Kerala

Does the institution of State Business Relations matter for Firm Performance? – A study of Indian Manufacturing

This paper examines the role of the external institutional environment captured by effective state-business relations on firm performance. By effective state-business relations, we mean a set of highly institutionalized, responsive and public interactions between the state and the business sector. We find that effective state-business relations have had a discernible positive impact on firm performance in Indian formal manufacturing for the years 2000-01 and 2004-05. We also find internal and external institutional factors are complementary to firm performance - smaller firms, firms in urban areas, older firms and firms in simpler organizational forms benefit more.State business relations; firm productivity; manufacturing sector; India

Rain, Rain, Go Away? The Investment Climate, State Business Relations and Firm Performance in India

It is commonly argued that a better investment climate reform – that is, lower distortions in the institutional, policy and regulatory environment in which firms operate - lead to discernible improvements in firm performance. In this paper, we argue that effective state business relations condition better investment climate outcomes and that the deeper institutional determinants of firm performance are the former. We examine the effect of effective state-business relations of total factor productivity (TFP) for formal sector firms in India for the years 2000-01 and 2004-05 and find support for this hypothesis.State business relations, total factor productivity, India

Organized versus Unorganized Manufacturing Performance in India in the Post-Reform Period

This paper analyses the productivity performance of the Indian manufacturing sector using unit level data, which is aggregated at four-digit industry level for the period 1994-95 to 2004-05 for 15 major states. The study focuses on both the organized and unorganized segments of the manufacturing sector. Both partial and total factor productivity (TFP) measures have been employed to trace the productivity performance of formal and informal manufacturing sector. TFP is estimated using Cobb-Douglas production functions at the four-digit industry level. The estimation is carried out by employing the Levinsohn-Petrin method, which uses intermediate inputs as the proxy to address the potential simultaneity bias in production function estimations. Our analysis reveals that labour productivity has increased for the organized sector over time whereas both labour productivity and capital intensity growth have slowed down in the unorganized sector during the 2000-01 to 2004-05 period. The production function analysis shows that capital has played a more significant role in the production process in both the sectors. TFP growth accelerated in the organized manufacturing sector during 2001-05 over 1995-2001 while the TFP decline that started in the first period (1995-2001) continued unabated even in the second period (2001-2005) in the unorganized manufacturing sector. We also find that output growth in both the sectors is productivity driven and not input driven. The improvement in TFPG of organized manufacturing in the post-2000 period as compared to the second half the 1990s across most states in India and that output growth was mostly productivity driven are important positive features of manufacturing performance in the post-reform period. However, the declining total factor productivity on one hand and increasing capital intensity of the unorganized sector is a cause of worry and raises several important questions.Productivity, Organized manufacturing, Unorganized sector, Industrial Sector

State business relations and manufacturing productivity growth in India

Empirical studies on total factor productivity growth (TFPG) in developing countries highlight trade open-ness, research and development and market structure as being the most important determinants of TFPG. The role of institutions remains overlooked in the literature on the determinants of TFPG. In this paper, we look into the role of institutional quality as captured by effective state-business relationships (SBRs) in influencing TFPG, using Indian manufacturing as a case-study. By SBRs we mean a set of highly institutionalised, responsive and public interactions between the state and the business sector. To compute TFPG, we use firm level data for both the formal and informal manufacturing sector. We correct for the simultaneity bias associated with the production function approach for TFPG estimation by employing a method developed by Levinsohn and Petrin. We propose measures of effective SBRs for 15 Indian States over the period 1994-2005, and then use them in TFP growth equations to estimate the effect of SBR on TFPG. The results indicate that SBR has positively affected the TFP growth of Indian industry. The effect however is primarily for the formal sector.State-business relations; Indian Manufacturing; Total Factor Productivity Growth

Technical Efficiency in the Informal Manufacturing Enterprises: Firm level evidence from an Indian state

The small and medium enterprise sector plays a pivotal role in the socio-economic development and growth of nations. But there is evidence that the firms in this sector are less efficient than those in the large enterprise sector. Hence it is imperative to examine their efficiency levels in order to identify the factors that contribute inefficiency in these firms and to generate information for designing support policies for them. In this study, level and sources of technical efficiency in the unorganised manufacturing sector in the Indian state of Kerala is examined using translog stochastic frontier production function. The analysis is conducted for five broad industry groups and the sector as a whole using firm level data. The findings show that high levels of technical inefficiency, which reduce their potential levels significantly, characterize the unorganised manufacturing enterprises in Kerala. Regarding the factors contributing to inefficiencies, it is observed that size, ownership, region (location) and nature of seasonality of operation significantly influence technical efficiency level in most of the industry groups. We also find that credit availability and employment of hired labour play an important role in explaining technical efficiency levels

Technical Efficiency in the Informal Manufacturing Enterprises: Firm level evidence from an Indian state

The small and medium enterprise sector plays a pivotal role in the socio-economic development and growth of nations. But there is evidence that the firms in this sector are less efficient than those in the large enterprise sector. Hence it is imperative to examine their efficiency levels in order to identify the factors that contribute inefficiency in these firms and to generate information for designing support policies for them. In this study, level and sources of technical efficiency in the unorganised manufacturing sector in the Indian state of Kerala is examined using translog stochastic frontier production function. The analysis is conducted for five broad industry groups and the sector as a whole using firm level data. The findings show that high levels of technical inefficiency, which reduce their potential levels significantly, characterize the unorganised manufacturing enterprises in Kerala. Regarding the factors contributing to inefficiencies, it is observed that size, ownership, region (location) and nature of seasonality of operation significantly influence technical efficiency level in most of the industry groups. We also find that credit availability and employment of hired labour play an important role in explaining technical efficiency levels

Internet of Thing Based Confidential Healthcare Data Storage, Access Control and Monitoring Using Blockchain Technique

Internet of Things plays a significant role in multiple sectors like agriculture, manufacturing and healthcare for collecting information to automation. The collected information is in different diversity and consists of confidential and non-confidential information. Secure handling of confidential data is a crucial task in cloud computing like storage, access control and monitoring. The blockchain based storage technique provides immutable data storage, efficient access control and dynamic monitoring to confidential data. Thus, the secure internet of things data storage, access control and monitoring using blockchain technique is proposed in this work. The patients health information that are in different formats are pruned by a decision tree algorithm and it classifies the confidential data and non-confidential data by the fuzzy rule classification technique. Depending on data owner's willing, the fuzzy rule is framed and the confidential and non-confidential data collected by internet of things sensors are classified. To provide confidentiality to confidential data, Attribute Based Encryption is applied to confidential data and stored in an off-chain mode of blockchain instead of entire data encryption and storage. The non-confidential data is stored in a plaintext form in cloud storage. When compared to support vector machine, K-nearest neighbor and Naive Bayes classification techniques, the proposed fuzzy rule based confidential data identification produces greater than 96 % of accuracy based on data owner willing and confidential data storage takes lesser than 20 % of storage space and processing time in an entire data storage. Additionally, the blockchain performances like throughput, network scalability and latency is optimized through minimal block size and transactions. Thus, our experimental results show that the proposed blockchain based internet of things data storage, access control and monitoring technique provides better confidentiality and access control to confidential data than the conventional cloud storage technique with lesser processing time

Meeting the challenges related to material issues in chemical industries

Reliable performance and profitability are two important requirements for any chemical industry. In order to achieve high level of reliability and excellent performance, several issues related to design, materials selection, fabrication, quality assurance, transport, storage, inputs from condition monitoring, failure analysis etc. have to be adequately addressed and implemented. Technology related to nondestructive testing and monitoring of the plant is also essential for precise identification of defect sites and to take appropriate remedial decision regarding repair, replacement or modification of process conditions. The interdisciplinary holistic approach enhances the life of critical engineering components in chemical plants. Further, understanding the failure modes of the components through the analysis of failed components throws light on the choice of appropriate preventive measures to be taken well in advance, to have a control over the overall health of the plant. The failure analysis also leads to better design modification and condition monitoring methodologies, for the next generation components and plants. At the Indira Gandhi Centre for Atomic Research (IGCAR), Kalpakkam, a unique combination of the expertise in design, materials selection, fabrication, NDT development, condition monitoring, life prediction and failure analysis exists to obtain desired results for achieving high levels of reliability and performance assessment of critical engineering components in chemical industries. Case studies related to design, materials selection and fabrication aspects of critical components in nuclear fuel reprocessing plants, NDT development and condition monitoring of various components of nuclear power plants, and important failure investigations on critical engineering components in chemical and allied industries are discussed in this paper. Future directions are identified and planned approaches are briefly described