Abstract
Indian Textile & Clothing industry has been the backbone of Indian Economy ever since Indian Economy gained global recognition and has been passing through many phases of ups and downs during ancient, medieval and modern days. With its 4% approximate contribution towards Indian National Income, Second largest employment (around 42 million direct employment) generation and more than 15% in Indian Industrial Production and in total export earnings as well, it has been the focal centre of Government policy and attention. However, in terms of capacity utilization and inefficient operation, it has remained the point of concern for policy makers and economists. Present paper is an attempt to trace the magnitude of relative scale inefficiency, input and output slacks of Top Ten Indian States in the field of Textile and clothing Industry. The level of relative scale efficiency and benchmarking of major contributing Indian States in textile industry is attempted by using Input-Oriented CRS Model of DEA with carefully selected set of Inputs and Outputs under different models. And various states are considered as Decision Making Units (DMUs) to calculate Scale efficiency. The study explores the feasibility of and is an attempt on developing decision rationalization model in the benefit of Textile Industry in India.
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