Some Comments on TFP and its Growth in India

This paper considers the prospects for constructing a model of TFP of investment, technological progress and growth of the technological share in TFP that determines the nature of economic growth. Two models are considered: a model emphasising investment, technological progress and its impact on TFP and a model emphasising a relation of investment, TFP and growth of technological share in TFP through the experience process. The claims in mode 1 and model 2 presented here differ from those in most standard economic literature: the relation between investment and TFP is considered, the relation between technological efficiency and technological progress is established and their effect on TFP is shown. A quotient between technological progress and investment is constructed that hampers the growth of technological progress. This gives a caution to the financial institutions about the enhancement of the quotient.