Economic Underdevelopment and Total Factor Growth in Small Scale Industries: Some Evidences from India

Globalization of Indian economy and fast and large industrialization questioned the sustainability and endurance of small scale industries (SSIs) from 1991. In this regard productivity and performance is remaining an issue that needs analysis for their development. However economic underdevelopment is remain a problem for the development of small scale industries. In this paper an attempt has been made to examine the productive performance of in small scale industries in India in underdeveloped areas with special reference to Assam. The findings of the study suggest the Total Factor Productivity (TFP) of SSIs in underdeveloped areas seemed to be growing steadily over the time. The overall linear trend line of TFPG of SSIs of India indicates a declining trend over the periods from 1973- 74 to 2001-2002.