Analyzing Technical Efficiency in the Textile Industry of India: A CCR and BCC Model Approach

This research aims to understand efficiency levels within the textile industry in India, given the dynamic nature of domestic and international business landscapes, by using data envelopment analysis, the Banker, Charnes, and Cooper (BCC) and Charnes, Cooper, and Rhodes (CCR) models. The results show a lot of room for efficiency improvements in the textile business of India, which is currently relatively technically efficient. The research shows that if policymakers want to increase India’s textile industry worldwide market share, they should focus on the comparatively efficient sub-sectors of the business, such as fabric, fiber, cotton, and mixed yarn. When it comes to managing technical efficiency in the textile sector, especially in developing economies like India, this research fills a gap in the literature. After reviewing the literature on the topic and noting its methodology and geographical scope, we find that few researchers have used data development analysis by using the BCC and CCR models to investigate and evaluate the sub-sectors efficiency in India’s textile industry. Consequently, our research will add to the existing body of knowledge by being the first of its kind to address these gaps.