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Purpose: The goal of this study is to investigate the nexus among TFP (total factor productivity), IT (information technology) capital accumulation, skills and key plant variables of 34 Indian industries for the period of 2009–2015. Design/methodology/approach: Annual Survey of Industries (ASI) data series are extracted and formulated using Microsoft SQL server. The authors employ Wooldridge (2009) technique to estimate productivity. To investigate the linkages among productivity, IT, skills and key plant variables, the authors estimate specifications using system generalized method of moments (sys-GMM). Advanced estimation techniques such as Heckman two-step process, probit equations, inverse Mills ratio and panel cointegration are applied to overcome problems of nonstationarity, omitted variables, endogeneity and reverse causality. Findings: The results indicate that the level of IT capital influences the TFP of Indian industries, so does the level of skilled workers. The outcome suggests that intermediate capital goods, location and ownership type enable the strength of IT capital and that in turn boosts productivity. The authors fail to find any impact of regional factors and contractual labor on IT capital and productivity. While medium-level gender diversity is statistically significant to influence productivity, however, no complementarities exist between gender diversity and IT capital accumulation. The results also indicate that IT demand of Indian industries is sensitive to availability of skilled workforce, fuel and electricity and access to short-term funding. Originality/value: To the authors' knowledge, this is the first study to investigate the nexus among TFP, IT capital accumulation, skills and organizational factors using ASI unit level data. Besides this, the paper offers two more novelties. First, it uses Wooldridge (2009) technique to estimate productivity, which is used by a handful of studies in the context of India. Second, the study identifies factors that impact productivity growth, IT demand and its adoption in Indian industries and thus contributes to growth and development literature. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to study the impact of infrastructure and governance quality on the state-level productivity of Indian manufacturing for the period 2008–2011.Design/methodology/approach The authors first rank Indian states on their quality of governance using benefit-of-the-doubt approach. Next, to explain state-level differences in total factor productivity (TFP), the authors assess the impact of a composite index of governance on industrial TFP of Indian states using alternate techniques and controlling for endogeneity. The authors also decompose the composite effect of governance in terms of economic, social and financial infrastructure and other key governance dimensions, which serves as another robustness check for the findings.Findings The authors find that TFP varies significantly across states, so does governance quality. Further, results suggest that TFP of Indian industries is sensitive toward public service deliveries of economic, social and financial infrastructure. However, the authors fail to find any impact of law and order indicators, for instance, rate of violent crimes, police strength and judicial service quality on the manufacturing productivity. The estimated coefficient of governance index is robust across alternate methodologies.Originality/value To the authors’ knowledge, this is the first study to assess the impact of regional governance factors on the manufacturing sector of India. The study has identified governance factors that impact manufacturing productivity in the Indian states. Findings suggest that an effective way to eliminate regional growth inequality in India is to ensure that the lagging states initiate reforms to improve the quality of institutions, regulation and governance. Findings of the study contribute to the limited literature on governance at the regional/sub-national level. [ABSTRACT FROM AUTHOR]