While the empirical evidence remains somewhat ambiguous, there are indications that trade liberalization has had a positive impact on total factor productivity since 1991. At the sectoral level, there is evidence of improved productivity for exporting sectors relative to nonexporting sectors. Some studies also throw up evidence of an increase in the growth of labour productivity (Goldman Sachs, 2007 and Economic Intelligence Unit, 2007).
Thus, it is clear that micro structural reforms undertaken over the years have enabled continuing productivity gains, particularly in the manufacturing sector, with enhanced access of Indian business to technology, increased competition, greater attention to research and development and other productivity enhancing activities. Widening and deepening of the financial sector, along with improved regulation and supervision, has also contributed to improvement in productivity.