Technical Efficiency of Apparel Industry in India at Firm Level

The current paper analyzed the technical efficiency of Indian textile in Wearing and Apparel firms using Data Envelopment Analysis Model. Data Envelopment Analysis (DEA) is a post ante analysis based on the past performance cross-sectional view of several organizational units in a given single period, as measured by their multiple inputs and outputs. We classify the units into two groups, efficient and inefficient, in the pareto sense. The study finds Individual Proprietorship has higher (grand) technical efficiency (rank-1). In the remaining organization type Partnership (rank-2) had the highest grand efficiency. Then public limited companies and Private Limited Company have a rank of 3 and 4 respectively. Among the selected Indian states firms from the state of Andhra Pradesh performed at higher average levels of technical efficiency with respect to both their state frontier and a grand frontier applicable to firms from all states.