ABSTRACT
The Indian machinery industry was developed mainly in the strict import substitution regime and with huge public investments. After liberalization imports were freely allowed and the import tariffs drastically reduced. Many MNEs also established units in India. Under these conditions domestic firms could survive only if they are technically efficient and operate in the technology frontier (Ray 2006). The study included in this special issue show that out of the top five firms that are close to the technology frontier three were domestic firms. This is welcome news from the point of view of Indian firms. This leads to the analysis of the determinants of technical efficiency of firms. The paper included in this issue identifies the main determinants.
