Productivity and convergence in India: A state-level analysis

► Using state level data over 1993 and 2005 in India, we find widespread regional variation in total factor productivity changes. ► In the beginning of the liberalization era, improvement in technical efficiency contributes to the growth of the productivity. ► In the later periods, the productivity growth is governed by the growth in technical progress. ► We find a tendency of convergence in productivity growth though only states that are efficient remain on the production frontier.