The period between 2000-2013 witnessed a more rapid increase in productivity.....

Productivity growth in India generally slowed down between the 2000-2013 and 2014-2025 periods, although this is not a uniform trend across all sectors and factors. The earlier period benefited from faster growth in structural change and within-sector productivity, while the latter period saw a slower pace of these factors.

1. Slower Structural Change:

During the early 2000s, India experienced a more significant shift of labor from agriculture to higher-productivity sectors like manufacturing and services. This structural change contributed substantially to overall productivity growth.

However, the pace of this structural transformation slowed down in the later period. The share of agriculture in the workforce decreased, but the shift to higher-productivity sectors was not as dramatic, leading to a smaller contribution to overall productivity growth from structural change.

2. Sectoral Productivity Growth:

While within-sector productivity growth remained a significant driver of overall productivity in both periods, the rate of growth within sectors may have slowed down in certain areas.

The initial surge in information technology (IT) adoption and its impact on productivity may have been more pronounced in the earlier period. As the IT sector matured, the incremental gains from further IT adoption may have become smaller.

Furthermore, the initial gains from economic liberalization and reforms might have been more significant in the earlier period, with subsequent reforms having a less dramatic impact on productivity.

3. Global Economic Conditions:

Global economic growth slowed down in the latter period, impacting India's export-oriented sectors and overall growth.

The global financial crisis of 2008 also had lingering effects on India's economy, potentially affecting investment and productivity growth.

4. Other Factors:

The COVID-19 pandemic and related disruptions also impacted productivity in various sectors during the latter period.

Factors like education and skill development, investment in capital and technology, and management practices also play a crucial role in productivity growth. While these factors have been consistently important, their relative contribution may have varied between the two periods.

In conclusion: The period between 2000-2013 witnessed a more rapid increase in productivity due to a combination of factors including faster structural change, potentially higher gains from IT adoption and economic liberalization, and a more favorable global economic environment. While the latter period (2014-2025) saw continued productivity growth, it was at a slower pace, potentially due to the factors mentioned above.