This paper presents experimental evidence on the impact of management practices on firm performance in India. A field experiment was conducted on large Indian textile firms, randomly assigning plants to treatment and control groups. Treatment plants received five months of management consulting, while control plants received only one month of diagnostic consulting. The results show that adopting modern management practices increased productivity by 11%, improved quality, reduced inventory, and increased computer use. These practices were profitable, yet many firms had not adopted them before, suggesting informational barriers were a key factor. The study also found that better management practices led to greater decentralization of decision-making and increased use of computers, which may have contributed to skill-biased technical change. The experiment faced challenges due to its small sample size, but used permutation tests and large time series data to address statistical concerns. The findings suggest that management practices significantly affect firm performance, and that better management can lead to substantial productivity gains. The study contributes to the literature on management practices, firm organization, and the role of information technology in productivity. It also highlights the importance of addressing informational barriers to the adoption of modern management practices.This paper presents experimental evidence on the impact of management practices on firm performance in India. A field experiment was conducted on large Indian textile firms, randomly assigning plants to treatment and control groups. Treatment plants received five months of management consulting, while control plants received only one month of diagnostic consulting. The results show that adopting modern management practices increased productivity by 11%, improved quality, reduced inventory, and increased computer use. These practices were profitable, yet many firms had not adopted them before, suggesting informational barriers were a key factor. The study also found that better management practices led to greater decentralization of decision-making and increased use of computers, which may have contributed to skill-biased technical change. The experiment faced challenges due to its small sample size, but used permutation tests and large time series data to address statistical concerns. The findings suggest that management practices significantly affect firm performance, and that better management can lead to substantial productivity gains. The study contributes to the literature on management practices, firm organization, and the role of information technology in productivity. It also highlights the importance of addressing informational barriers to the adoption of modern management practices.