Main Article Content
The paper aims at identifying the major determinants of labour productivity in the organised textile sector of India using unit-level panel data drawn from ASI for the period 2007-08 to 2018-19. Based on the Hausman test results, the fixed effect model was more consistent, efficient and reliable than the random effect model for interpretation of results. The results obtained were consistent with economic theories and empirical literature. The skill, capital intensity, wages and capacity utilisation were the most significant determinants of labour productivity in the organised textile sector of India. This further substantiates the significance of all these variables in accelerating labour productivity. The conclusive relationship between wages and labour productivity recommends that textile firms should set up a productivity-based wages policy. Also, comprehensive skill development programs have to be developed for the entire value chain of the textile industry supported with technological advancement.