The study compared productivity growth in manufacturing and service firms in India from 2008 to 2014. Service firms showed higher productivity growth than manufacturing firms. Both sectors were mainly driven by technical advancements. IT firms had the highest productivity growth compared to chemical, textile, and trade industries. Factors like capital intensity, turnover ratio, and debt affected productivity growth in manufacturing, but only capital intensity affected service sector productivity. The study suggests focusing on improving productivity in both manufacturing and service sectors.