This paper investigates the impact of management practices on firm performance in large Indian textile firms through a field experiment. The authors provided free consulting on modern management practices to a randomly selected set of treatment plants and compared their performance with control plants. The results show that adopting these practices led to an 11% increase in average productivity, increased decentralization of decision-making, and a greater use of computers. The study suggests that informational barriers were a primary factor in explaining why firms had not adopted these practices earlier. The findings highlight the importance of modern management practices in improving firm performance and the need for better information dissemination to firms.This paper investigates the impact of management practices on firm performance in large Indian textile firms through a field experiment. The authors provided free consulting on modern management practices to a randomly selected set of treatment plants and compared their performance with control plants. The results show that adopting these practices led to an 11% increase in average productivity, increased decentralization of decision-making, and a greater use of computers. The study suggests that informational barriers were a primary factor in explaining why firms had not adopted these practices earlier. The findings highlight the importance of modern management practices in improving firm performance and the need for better information dissemination to firms.