Journal Cover
Volume 20 No 8 (2022)
Download PDF
An empirical analysis of pharmaceutical industry in India using Data Envelopment Analysis
V Vijayalalitha,Pratibha Garg, Tapan Kumar Nayak,P. Sivakumar
Abstract
The present paper evaluates total factor productivity growth and its components using
Malmquist Data Envelopment Analysis for the period of 2009-10 to 2019-20. The data were collected
from CMIE- PROWESS for the firms that are having sales more than Rs. 100 Crores based on the year
2009-10. The total of 96 firms were used for the analysis and are in terms of rupees in Crores. Total
sales, cost of raw materials, salaries and wages, cost of power and fuel, and cost of Advertising and
marketing are used in the analysis. The result reveals that the year 2017-18 recorded highest TFP
growth mainly due to technical efficiency. The year 2012-13 recorded the lowest TFP changes due to
technological changes. It is evident from the result that negative TFP growth is reported most of the
firms during the study period. The main reason for lowest TFP growth is due to technological change
in Indian Pharmaceutical firms.
Keywords
Data Envelopment Analysis, Indian Pharmaceutical Industry, Malmquist index, total factor productivity, Technical Efficiency, Technological changes
Copyright
Copyright © Neuroquantology
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Articles published in the Neuroquantology are available under Creative Commons Attribution Non-Commercial No Derivatives Licence (CC BY-NC-ND 4.0). Authors retain copyright in their work and grant IJECSE right of first publication under CC BY-NC-ND 4.0. Users have the right to read, download, copy, distribute, print, search, or link to the full texts of articles in this journal, and to use them for any other lawful purpose.