Paper Title
Assessing State-Level Industrial Efficiency in India: A Data Envelopment Analysis Approach
Abstract
This study aims to assess the efficiency of industries across 18 states in India for the year 2019-2020, employing Data Envelopment Analysis (DEA) with a focus on the non-oriented Slack-Based Model (SBM) under the assumption of constant returns to scale. The analysis identifies 6 out of the 18 Decision-Making Units (DMUs) as operating efficiently. By employing the SBM model, the study delves into the root causes of inefficiencies and proposes recommendations for enhancing the efficiency of inefficient DMUs through strategic adjustments in input and output variables. Notably, the findings underscore the need for reducing inputs (such as the number of industries, workers, and fixed capital) and maximizing output variables (total output) to attain efficiency, providing valuable insights for policymakers and practitioners aiming to bolster industrial productivity.
Keywords - Data Envelopment Analysis, Slack- based model (SBM), non-oriented, industries, India