Change in Efficiency Level in Achieving Human Development: Inter-Temporal Comparison of Indian States

In India, research on human development has received considerable importance from both the academic and policy point of view. However, all the previous studies on human development mainly focused on the equity aspects of development without considering the resource base. Therefore, the current study seeks to analyse the change in the efficiency level of the states in achieving the various dimensions of human development through Panel Data Envelopment estimation of efficiency by using the Malmquist index for the periods 1981, 1991, 2001 and 2011. It has been found that the technical efficiency change is significant but technological change is not at all prominent in achieving human development from 1981 to 2011. This indicates that the states are basically attempting to catch up with the production frontier by changing their input levels rather than through new technological improvements. One of the major findings is that Uttar Pradesh faced a negative factor productivity in the health and education sectors, and in terms of the standard of living, which implies that the levels of outcome are extremely poor and still provide no scope for improvement by using the current level of inputs. This is a cause for serious concern and it must be addressed by increasing input allocation and the efficient utilization of such inputs. The public sector also needs to be strengthened in such states