Assessing comparative efficiency of the state-owned mixed and private sectors in Indian industry

This paper evaluates performance differences between government owned, mixed sector and private sector enterprises in India for the period 1973–1974 to 1988–1989. The results establish that enterprises owned by the central government and state governments are less efficient than mixed or private sector enterprises, while mixed sector enterprises are less efficient than those in the private sector. The results contradict extant evidence finding no performance differences between government-owned and private firms in India. There have, however, been inter-temporal efficiency gains for the sector as a whole, perhaps resulting from reforms undertaken towards improving government-owned enterprises’ performance.