Total factor productivity growth (TFP) is the best known measure of productivity.TFP is a costless growth. TFP growth is a disembodied technological progress; therefore, it cannot be attributed to any single factor of production. TFP is also dynamic as it can only be captured over a period of time. It turns into unanticipated residual profits. The period of study is 20 years, i.e. from 1991 to 2010, based on steel industry. It is observed that there is significant productivity growth in few steel companies. The malleability of technologies needs to be kept in mind. It is on account of the rigidities in the case of steel industry that real factor productivity is not significant in some steel companies. It also appears that under such circumstances even the costless growth alternative of TFP is not available because TFP is the practice of technology but if the technology is rigid, it is not possible to have TFP growth.
