Productivity growth is an important aspect of industrial development of any economy. Higher productivity saves scarce resources, thereby reducing supply constraints. In a competitive environment, increased productivity, leading to cost reduction, may help in improving the standard of living by making products available at more affordable prices. This may thus transfer the fruits of productivity to common masses, thereby generating demand and higher growth of Gross Domestic Product (GDP). In the present context of a globalized world, every economy has to maintain international competitiveness for which enhancing productivity is absolutely essential. Given this backdrop the study attempts to probe the productivity performance of the Indian economy during 1980-81 to 2003-04 using Growth Accounting Approach (GAA).