“…Capacity utilisation can be interpreted in a technical sense, relative to the maximum output obtainable from a production facility under realistic assumptions; or in an economic sense, relative to the economically optimal level of output. The measures derived from the two conceptualisations, engineering and economic, do not always correlate well (Azeez, 2001; Berndt and Morrison,1981; Erumban, 2005). Levels of capacity utilisation in the Indian manufacturing sector have been studied recently by Goldar and Renganathan (2008), who noted a decline within the organised manufacturing sector from 1995 to 2001, with some recovery thereafter.…”