THE STRUCTURE OF THE INDIAN ECONOMY

Paramita Dasgupta & Debesh Chakraborty

Paramita Dasgupta Lecturer Department of Economics Ananda Chandra College P.O & Dist. Jalpaiguri Pin- 735101 West Bengal, India Tel: 91-03561 255554 / 91-03561 227982 paramita_dasgupta23@rediffmail.com

Debesh Chakraborty Department of Economics Jadavpur University Calcutta- 700032 India Tel: 91-33 24146328 debesh_chakraborty@hotmail.com

Abstract and paper submitted for the Fifteenth International Input-Output Conference to be held at the Renmin University in Beijing, China, June 27- July1, 2005.

THE STRUCTURE OF THE INDIAN ECONOMY
Paramita Dasgupta* & Debesh Chakraborty**

Abstract

The study explores the structure of the Indian economy with an input based scheme of classification of sectors. On the basis of the factors of production (natural resource, research & development and labour & capital) intensively used in the production process, all economic activities are classified into three broad categories - Ricardo sectors (natural resource intensive), High-Technology sectors (high-technology intensive) and Heckscher – Ohlin sectors (capital-labour intensive). In order to explore the structure of the Indian economy Input – Output technique developed by Leontief, has been used as it offers important insights into the structure of an economy. The relative strength of linkages of the three categories of sectors have been studied and the key sectors of the Indian economy are identified.

Rasmussen’s most widely used methods of measuring forward and backward linkages are used to identify the key sectors. Forward linkages of different sectors are also measured within the Ghosian framework where a matrix of fixed output coefficients is used for this purpose.

When we use Rasmussen’s method for measuring both forward and backward linkages, key sectors are mostly Hecksher – Ohlin (H-O) sectors. Among the ten key sectors, the numbers of the Ricardo and High Technology (H-T) sectors are two and one respectively. Again when Rasmussen’s method for measuring backward linkage and Ghosian framework for measuring forward linkage are used, the number of the key sectors has substantially increased to eighteen. The numbers of both the Ricardo and H-T sectors have increased while the number of the H-O sectors remains same.

In order to get a better picture about the structure of the Indian economy, another framework is presented in the paper. The I-O model is partially closed for which sectors are divided into two groups, durable sectors and non-durable sectors. The non-durable sectors are endogenised to form an addition vector on the transaction matrix and the durable sectors are treated as exogenous. In the augmented structure there has been a significant improvement in the absolute values of both forward and backward linkages but the qualitative characters of the sectors have not seen to be changed significantly. In the augmented structure, the number of the key sectors is seen to be less than that of the identified key sectors

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in the Leontief and Ghose models. Interestingly, none of the H-T sectors qualifies as the leading sector in this structure.

Finally in the paper the components of final demand are identified which act as the driving force behind the entire analysis of linkages in the input-output static open framework. The study concludes with some policy implications.

* Department of Economics, Ananda Chandra College, P.O & Dist. Jalpaiguri, Pin-735101,West Bengal, India. E-mail address: paramita_dasgupta23@rediffmail.com ** Department of Economics, Jadavpur University,Kolkata 700032, India. E-mail address: debesh_chakraborty@hotmail.com

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THE STRUCTURE OF THE INDIAN ECONOMY
Introduction

Over the last 56 years, the Indian economy has experienced a gradual structural change. Though the pace of the structural transformation was more or less slow throughout the pre-reform period, it has become rapid after the introduction of new economic reforms in the decade of the nineties. At the time of independence, Indian economy was predominantly rural and agricultural. At the beginning years of the First Five-year Plan, contribution of the primary sector (agriculture, forestry and logging, fishing) in GDP at factor cost was largest followed by tertiary sector and secondary sector respectively. Thereafter the major drive towards diversification and modernization of the Indian economy in the following plans resulted in increased shares of the secondary and tertiary sectors and declined share of the primary sector in the national product. The share of the primary sector in GDP at factor cost declined from 54.56% in 1950-51 to 27.87% in 1999-00 while share of the secondary sector was 16.11% in 1950-51 and increased to 25.98% in 1999-00. The share of the tertiary sector increased from around 29% to 46% during this period. Indian economy also experienced a major structural change within the industrial sector as a result of the major drive for industrial diversification in the mid-fifties. While the share of the capital goods industries and the basic goods industries in the total industrial value added increased more or less rapidly, the share of the consumer goods in total industrial value added declined considerably over the years. However, the pace of transition of the Indian economy from an agricultural economy to an industrial one was quite slow since 1951. It was in the decade of the eighties the economy emerged from the phase of slow growth rate and deceleration. Finally, a major shift in the macroeconomic policies in the decade of the nineties accelerated the pace of the structural transformation of the Indian economy and set India on a high growth trajectory. In terms of average growth rate, the performance in the nineties (6.5%) was better than that recorded in the eighties (5.8%). While both the industrial and service sectors registered relatively high growth rates during recent period, agriculture and allied activities experienced a relatively low rate of growth as compared to the eighties. This underlines a major structural shift in the Indian economy in recent years, with economic growth becoming more vulnerable to the performance of industrial and service sectors and less to the performance of the agricultural sector. In order to keep the momentum of the structural transformation of the Indian economy, investment should be concentrated to those sectors which are strongly integrated with the rest of the economy and have a larger multiplier effect on growth and development. In other words, the key or priority sectors are those which can stimulate greater economic activities in other sectors and investment should be concentrated to these sectors, particularly to achieve the target rate of growth of 8% of real GDP as envisaged in the Tenth Five-year Plan.

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A more recent study on linkages of the Indian economy is conducted by Sastry. The pioneers in this field were Baradwaj (1966). Saxena and Dhawan (1992) have studied the intersectoral linkages in the Indian economy and identified the key sectors by using the supply side model for calculating the forward linkages and demand side model for calculating the backward linkages. All economic activities are classified into three broad categories . The have examined the linkage of growth among the agriculture. has been used.Ricardo sectors (natural resource intensive). There are several studies on the linkage analysis and the structural interdependence of the Indian economy. The other studies related to the sectoral linkages in India are done by Bhalla (1974). All the figures are given in Rs(lakh). High-Technology sectors (high-technology intensive) and Heckscher . secondary sector and tertiary sector. For this purpose we have used the Indian Input-Output Transaction Table of the year 1993-1994. industry and service sectors of the economy using both input-output and simultaneous equations framework. The forward and backward linkage results are discussed and key sectors of the Indian economy are identified in this section. The study of the sectoral linkages and the identification of the key sectors based on the input-output technique shows the nature and the degree of interdependence of an economy. research & development and labour & capital) used intensively in the production process. We have aggregated the commodities and reduced the transaction matrix into a (72 x 72) one. Ministry of Statistics and Programme Implementation. sourced from Central Statistical Organization. While exploring the structure of the Indian economy a new scheme of classification of sectors based on the factors of production used intensively in the production process of different sectors. Hashim (1970) and Hazari (1970). Venkatramaiah and Argade. The structural relationship of an economy can be examined by using the input-output tables. Saxena and Bhatnagar (1987). The linkage analysis is further discussed within an 4 . Government of India. The plan of the paper is as follows: In section 1 the definitions of three categories of sectors are given and input based scheme for classification of sectors are discussed. The input based scheme for classification of the sectors in the study of the structure of the Indian economy is expected to reveal the importance of the resource intensive. on the basis of inputs (natural resource. technology intensive and labour and capital-intensive sectors in the production structure of the Indian economy.Ohlin sectors (capital-labour intensive). Singh. All the subsequent analysis has been in terms of aggregated transaction matrix. The aggregation scheme is given in the appendix table A. Such classification is completely different from the usual way of classifying the sectors like primary sector. Mehta (1977). Thus in order to study the structure of the Indian economy with the classification of sectors based on input usage input-output technique is appropriate.This paper has studied the structure of the Indian economy with an objective to identify the key sectors which could accelerate the overall growth rate of the economy in the post-liberalization period. Section 2 begins with a discussion on the input-output methodology used in this study. Bhattacharya and Unnikrishnan (2003).

fertilizers. Section 1 CLASSIFICATION OF SECTORS All economic activities can be classified into three broad categories according to the factors used intensively in the production process. By the same argument minerals like coal and lignite. crude petroleum and natural gas. In other words. jute. wood and wood products. In section 4 the components of final demand acting as stimulant for different sectors are identified. Production of agricultural crops and other allied activities like milk and milk products. HIGH-TECHNOLOGY SECTORS: The sectors requiring relatively higher proportion of research and development are included into the second category called High-Technology sectors (H-T sectors). communication are also regarded as H-T sectors because these sectors require higher proportion of research and development. Twenty-seven out of seventy two sectors are regarded as Ricardo sectors. Education and research. paper and paper products etc can also be regarded as Ricardo sectors as resource intensive agricultural commodities are the most important factors of production used in the production process of these sectors. cotton textiles. These three categories are: (a) Ricardo sectors. petroleum products. hemp textiles. and labour intensive sectors like printing and publishing. This category contains most of the sophisticated technology-using manufacturing sectors like industrial electrical and non-electrical machines. tobacco and tobacco products.augmented structure in section 3. furniture and fixtures. The summary and conclusions drawn on the basis of the empirical results are discussed in section 5. pesticides. synthetic fiber and resin. transport equipment. rubber and plastic products etc. communication equipment. medical and health. mesta. HECKSCHER-OHLIN SECTORS: The sectors that use relatively standardized production technologies are regarded as Heckscher-Ohlin sectors (H-O sectors). food and beverages. metallic and non metallic minerals are included in the category of Ricardo sectors. miscellaneous manufacturing etc.Ohlin sectors. RICARDO SECTORS: Ricardo sectors are those which use natural resources intensively in their production process. Apart from that. heavy chemicals etc. The industries like leather products. intensively used in their production process. electronic equipment. cement are characterized by intensive use of natural resources and therefore are regarded as Ricardo sectors. forestry and logging. fishing are basically natural resource intensive and therefore treated as Ricardo sectors. animal services. iron ore. other textiles. This category consists of capital intensive sectors like iron & steel. the agrobased sectors like sugar and khandsari boora. non-ferrous basic metals. medicines and drugs. (b) High technology sectors (c) Heckscher . H-O category contains the sectors which are either capital or labour intensive. Being 5 . All seventy-two sectors (after aggregation) are distributed into these three categories depending on the resources or factors. There are all total twenty-three sectors in this category.

A)-1 f . This in turn helps in formulating different economic policies. However. other services and public administration also find place in this category .A )-1 is the Leontief Inverse. Rasmussen (1956) developed the measurement of the industrial linkages using Leontief inverse matrix. transport services. the demand led Leontief model is criticized as being inadequate for measuring the forward linkages. So in order to study the structure of Indian economy with the classification based on production characteristics. The concepts of backward and forward linkages related to this method are very useful for assessing the impact associated with the growth of a particular sector. An alternative measure for the forward linkages can be obtained by using the supply driven Ghose model (1958). Leontief static open input-output model is represented as. The Ghosh model is given by x′ = e′ [X] + v′. where v′ denotes the transpose of the value added vector . While studying the structural changes in Denmark overtime. this technique is appropriate. x = [X]e + f . where [X] is the (n x n) transaction matrix. if correctly evaluated. e′ and x′ are the transpose of the unit vector and gross output vector respectively. The solution of the system is x = (I . The forward linkages and backward linkages in Leontief framework measure the degree of integration of a particular sector with the rest of the economy. 6 . In fact in the Rasmussen index for the sector j forward linkage consists only of commodity j and is therefore completely different from the real nature of forward linkage (which.A)-1 give both direct and indirect requirement per unit of output. So Rasmussen’s measure for forward linkages based on Leontief inverse is said to have a serious qualitative inconsistency. e is the (n x 1) unit vector and f and x are the (n x 1) final demand vector and gross output vector respectively. Only an input-output frame of reference can provide the picture of interdependence of sectors within an economy. Section 2 METHODOLOGICAL FRAMEWORK Input-Output technique developed by Leontief (1956) is an important analytical tool to understand and grasp the nature and the degree of integration of an economy. where A is the (n x n) technical coefficient matrix or fixed input coefficient matrix. The elements of the technical coefficient matrix A indicate only the direct requirements per unit of output while the elements of the matrix (I . The classification of sectors on the basis of production characteristics are given in appendix table B. the elements of A . trade. 1984). should be expressed in terms of all commodities) (Cella.labour intensive sectors banking and insurance.The number of H-O sectors is twenty-two. aij = Xij / xj . ( I . Hirschman (1958) used Rasmussen’s indices for identification of key sectors in his analysis about disequilibrium development strategy.

backward linkages are defined as. BACKWARD LINKAGES: Backward linkage of a sector shows the relationship between the activity in the sector and its purchases. I1 = c / L where c = Σ pij / n . BACKWARD AND FORWARD LINKAGE INDICES: Backward and forward linkage indices reveal the relative linkage strength of a particular sector in terms of backward and forward linkages respectively. bij = Xij / xi. The measure of forward linkages in demand led model is defined as the row-sums of the Leontief inverse i. FORWARD LINKAGES: Forward linkage shows the relationship between the total output of a sector and the sale of its output as intermediate input to other sectors. An alternative measure of forward linkages is obtained in the supply led model where the forward linkages are defined as the row sums of the matrix (I . an element of (I . Backward linkage index is defined by the ratio of average of j-th column of Leontief inverse to the total average.e.B) -1 e. In matrix notation the forward linkages in the demand led model are R1 = (I .A)-1 where e is the unit vector and Q is the vector for backward linkages. the total average and pij denotes 2 ∀i ∀ i. that is. forward linkage of a particular sector shows the change in the total output of the sector if the final demand of each sector increases by one unit. while in the Ghosh model. where B is the supply coefficient matrix or fixed output coefficient matrix. where the vector for forward linkages is denoted by R2.The solution of the Ghosh model is x′ = v ′ ( I .A) -1 shows the increase in the gross output of industry i if the final output of industry j increases by a unit.B) -1 . Thus in the Leontief model.A)-1 e where the vector for forward linkages is denoted by R1. the backward linkages are nothing but the column-sums of the Leontief inverse. The elements of B.j 7 . In matrix notation. the column . The backward linkages are also treated as output multipliers in the input-output framework. R2 = (I .e. The backward linkage of a particular sector is defined as the change in gross output of all sectors in an economy if the final demand for that particular sector increases by a unit. Q = e ′ (I .B ) -1.wise average and L = Σ pij / n . that is. The k-th column sum would indicate a change in output of the whole economy if the final demand of the k-th sector increases by one unit.B) -1 denotes the increase in the output of the jth industry required to utilize the increased output of the ith industry. an element of (I . Leontief Inverse is premultiplied by the transpose of unit vector i..

(1/n) Σpij}2]1/2 [(1/n) Σpij] -1 ∀i ∀i ∀i CV2 = [ (1/n-1) Σ{pij .8. all the seventy-two sectors are divided into three groups namely strong intermediate and weak. The intermediate group contains the sectors with index values less than one but greater than or equal to .j and qij denotes the elements of (I-B) -1 2 ∀j If the column-wise average (row-wise average) is greater than the total average. while the other sectors have either moderate or weak linkage strength. then the sectors are said to have a strong integration with the rest of the economy in terms of backward linkages (forward linkages). I2 = r / L where r = Σ pij / n the row-wise average . a measure for variability of the linkages is required to measure the stability of the linkages strength provided by the sectors. Strong: LI >= 1 Intermediate: 1 > LI >= . CV1 = [ (1/n-1) Σ{pij . the index constructed for measuring the strength of forward linkage in the demand side model is defined as the ratio of average of i-th row sum of Leontief Inverse to the total average. Rasmussen however has labeled these two types of ∀j indices as the ‘ power of dispersion’ and ‘sensitivity of dispersion’ respectively. CV2 and CV3 respectively are defined as.the elements of Leontief inverse .(1/n) Σqij}2]1/2 [(1/n) Σqij] -1 ∀j ∀j ∀j 8 .(1/n) Σpij}2]1/2 [(1/n) Σpij] -1 ∀j ∀j ∀j CV3 = [ (1/n-1) Σ{qij . For this purpose coefficients of variation for the Leontief backward and forward linkage indices and Ghosian forward linkage indices are measured. Similar measure is used to calculate the forward linkage index in the supply led model. As averages are said to be sensitive to extreme values.8 while the rest are included in the weak group. I3 = h / G where h = Σ qij / n and G =Σ qij / n ∀i. The sectors with index values either greater than or equal to one are grouped into the strong category. Coefficients of variation for Leontief backward and forward linkage indices and Ghosian forward linkage indices denoted by CV1.8 Weak: LI < . Based on the index values. where the row sums are obtained from the matrix ( I -B )-1. that is. Similarly. LI= Linkage Indices.

that is around sixty five percent of the sectors has the capacity of affecting the gross output of the economy significantly. electronic equipment. printing and publishing. it can be seen that among H-T sectors. mesta. 9 . followed by the H-O and Ricardo sectors. while the numbers of the H-O and Ricardo sectors are fourteen and twelve respectively (Table 1). varnishes and lacquers. Intermediate group contains only seven sectors. fertilizers. it is very heartening to observe that out of the seventy two sectors. most of the Ricardo sectors are either agro based industries like cotton textiles. other non metallic mineral products. sugar and khandsari boora etc or related to mining like coal tar products. both electrical and non electrical. On the other hand. communication equipment. jute. other transport equipment. All of them except transport services and hotels and restaurants are Ricardo sectors while no H-T sector features among them. paper and paper products. other textiles. Empirical results and discussions From appendix table C. miscellaneous manufacturing. the number of the sectors with strong backward index is forty seven. other food products and beverages. heavy chemicals. construction. forward linkage indices in Leontief framework and forward linkage indices in the Ghosian framework along with their values of coefficient of variation are enclosed in the appendix tables C. Except animal services. Seven and eighteen sectors are found to be moderately and weakly linked with the rest of the economy respectively in terms of backward linkages. greater is stability of the linkage provided by the sector. The backward linkage indices. electricity. industrial and non industrial machines. From table 1. pesticides. rubber and plastic products. tractors and agricultural implements.Smaller the value coefficient of variation. non ferrous basic metals. If we look into the input usage based classification of these forty-seven sectors we will find that the number of the H-T sectors is highest. synthetic fiber and resin etc are the H-O sectors which can stimulate greater economic activities in other sectors of the economy. motor vehicles. Out of the forty-seven sectors. rail equipment etc are found to be strongly integrated with the rest of the economy. hemp textiles. D and E respectively. petroleum products. paints. leather products. twenty-one sectors are highly technology intensive. Iron and steel. Any change in final demand in these sectors will effectively influence the economic activities of the other sectors.

manufacturing Printing and publishing Tea and coffee processing Electricity Construction Structural clay products products. lacquers Rubber and plastic products Synthetic fiber and resin Misc.64) 2(9.09) 6(27.04) H-T SECTORS 21(91.30) 0(0. Table 2 displays the percentage share of each category of sectors in the case of backward linkages.52) 10(37.70) H-O SECTORS 14(63. varnishes. cosmetics and glycerin Paints. Pesticides Batteries Motor Vehicles Other transport equipment Jute. TABLE 2: PERCENTAGE SHARE OF EACH CATEGORY OF SECTORS IN BACKWARD LINKAGES (LEONTIEF) CATEGORY: GROUP: STRONG INTERMEDIATE WEAK RICARDO SECTORS 12(44.TABLE 1 : SECTORS WITH STRONG BACKWARD LINKAGES (LEONTIEF) RICARDO SECTORS Paper and paper newsprint Other textiles Leather products Cement Other food products beverages Coal tar products Cotton textiles Petroleum products H-T SECTORS Industrial machinery Tractors and agri. hemp and mesta textiles Electrical industrial machinery Animal services Ships and boats Other non metallic mineral Other non electrical products machines Sugar and khandsari boora Drugs and medicines Communication equipment Heavy chemicals Rail equipment Watches and clocks Other chemicals Medical and health Other electrical machinery Machines tools Office computing machines Let us now examine the percentage share of each category of sectors in three groups of linkage strength. cables and appliances and Electronic equipment H-O SECTORS Iron and steel Non ferrous basic metals Fertilizers Hand tools and metal products Soaps. which would reflect the strength or capacity of each category of sectors in percolating the effects of growth to the rest of the economy.44) 5(18. Implements Electrical wires.0) 2(8.27) 10 .

They are crude petroleum and natural gas. electricity. banking and insurance. commercial crops. construction. However.e. coal and lignite. In the demand side model only six Ricardo sectors possess strong forward linkage index values. non ferrous basic metals etc.44% of Ricardo sectors have strong impact on the gross output of the economy.64% of sectors have strong impact on the gross output of the economy in terms of backward linkages. The conclusion that we can draw from the table 4 is that a substantial proportion of the H-O sectors (50 %) is strongly sensitive to the changes of final demand in all sectors and at the same time weak sensitivity is also present in significant percentage (40. Changes in the final demand of around 44.30% of H-T sectors have strong backward index values.The H-T sectors play the most dominating role in this case as 91. The forward index values of the sectors in demand side model are given in appendix table D. other crops.04%). the percentage of these sectors with weak backward linkage values is not an insignificant one (37. Out of the nineteen sectors with strong index values. 63.91). nineteen sectors are seen to have a higher than average forward linkage index value. The only H-T sector showing strong integration with the rest of the economy in terms of Leontief forward linkage is heavy chemicals.. In the case of Leontief forward linkage indices. In the case of the H-O sectors. iron and steel. In case of the Ricardo sectors we observe a fairly high percentage (62. (Table 3 ) TABLE 3: SECTORS WITH STRONG FORWARD LINKAGES (LEONTIEF) RICARDO SECTORS H-T SECTORS Crude petroleum and natural Heavy chemicals gas Other crops Other chemicals Coal and lignite Petroleum products Paper and paper products. petroleum products and paper and paper products. 11 .newsprint Commercial crops H-O SECTORS Transport services Trade Electricity Iron and steel Banking and insurance Other services Non ferrous basic metals Synthetic fiber and resin Hand tools and other metal products Construction Rubber and plastic products Let us now find the degree of sensitivity of these three categories of sectors with respect to changes in the final demand. Most of the Ricardo sectors and H-T sectors are found to be weakly linked with the other sectors. fourteen out of twenty two sectors i. twelve sectors are from H-O category and most of them are basic industries and services like trade.96%) of weak sensitivity to changes in final demand. transport services. Most of the H-T sectors are weakly sensitive to the changes in the final demand.

the share of Ricardo sectors in the strong group has increased substantially from 22. newsprint Petroleum products Iron ore Jute. rubber and plastic products and hand tools and other metal products. pesticides. transport.70) 3(13. the empirical results obtained in the Ghosh’s supply side model are quite different from those found in the Leontief demand side model. The number of Ricardo sectors with strong linkage indices in the supply side model is twice the number of these sectors in the demand side model. Total number of sectors with strong index values has also increased from nineteen to twenty six of which twelve sectors are resource intensive.00) 2(9.TABLE 4: SHARE OF EACH CATEGORY IN FORWARD LINKAGES CATEGORY: GROUP: STRONG INTERMEDIATE WEAK RICARDO SECTORS 6(22. The 12 . hemp and mesta textiles Animal services Wood and wood products Cement H-T SECTORS Heavy chemicals Other electrical machinery Pesticides Communication Industrial machinery Other chemicals H-O SECTORS Electricity Iron and steel Banking and insurance Fertilizers Non ferrous basic metals Synthetic fiber and resin Structural clay products Paints. varnishes and lacquers.96) H-T SECTORS 2(8.44%.04) 18(78. while the sectors which do not find place in the strong group are trade. other electrical machinery.09) 9(40.81) 17(62.91) However.26) (LEONTIEF) H-O SECTORS 11(50. The numbers of Ricardo and H-T sectors with strong forward linkage values have significantly increased while the number of the H-O sectors has declined in the Ghosh model. are the newly included sectors in the group of the strong index values. industrial machinery also qualify as the other H-T sectors strongly integrated with the rest of the economy in terms of forward linkage (Table 5). Appendix table E displays the index values of the sectors in the supply side model. structural clay products.22) 4(14. fertilizers. Among the H-O sectors. paints. Apart from heavy chemicals and other chemicals.22% to 44. communication. construction. varnishes and lacquers So far as the percentage share of each category of sectors in the each group of index values is concerned. TABLE 5: SECTORS WITH STRONG FORWARD LINKAGES (GHOSH) RICARDO SECTORS Other non metallic minerals Crude petroleum and natural gas Coal tar products Coal and lignite Other metallic minerals Paper and paper products. The number of H-O sectors has declined to eight in the supply side model.

percentage share of the H-T sectors are increased from 8.44) 2(7. the sectors which possess strong forward and backward linkage indices qualify as the key sectors of an economy.27) 8(36.13) H-O SECTORS 8(36. electricity.41) 13(48.36) 6(27. (Table 6).15) H-T SECTORS 6(26.09%. NO.74) 12(52.70% to 26. In the case of the H-O sectors. RESIN IRON AND STEEL NON FERROUS BASIC METALS HAND TOOLS AND OTHER METAL PRODUCTS CONSTRUCTION ELECTRICITY RUBBER AND PLASTIC PRODUCTS CATEGORY RICARDO RICARDO H-T H-T H-O H-O H-O H-O H-O H-O H-O When the demand side model is used for measuring both forward and backward linkages. 23 27 29 36 35 40 41 42 60 61 26 KEY SECTORS PAPER AND PAPER PRODUCTS PETROLEUM PRODUCTS HEAVY CHEMICALS OTHER CHEMICALS SYNTHETIC FIBRE . Heavy chemicals and other chemicals are the only two H-T sectors strongly integrated with the rest of the economy. Among the ten key sectors. TABLE 6: SHARE OF EACH CATEGORY IN FORWARD LINKAGES (GHOSH) CATEGORY: CLASS: STRONG INTERMEDIATE WEAK RICARDO SECTORS 12(44.27%. This study of exploring the structure of the Indian economy identifies the following sectors as the key or priority sectors of the Indian economy.36% and that in the intermediate group has increased from 9. the numbers of the Ricardo and H-T sectors are two each. Table 7 shows the key sectors obtained in the Leontief model while the identified key sectors. the key sectors are mostly H-O sectors. newsprint and petroleum products are the two Ricardo sectors qualified as the key sectors in the demand side model.09) 5(21.36) Identification of key sectors According to Hirschman (1958). the share in the strong group has declined from 50% to 36. TABLE 7: KEY SECTORS WHEN DEMAND LED MODEL USED FOR MEASURING FORWARD AND BACKWARD LINKAGES IS USED SL.09% to 27. when backward linkages are measured in Leontief framework and forward linkages are measured in the Ghosh framework are given in the Table 8. Paper and paper products. 13 . The remaining seven sectors are either capital or labour intensive and are basically the basic industries and infrastructure like iron and steel. construction.

The numbers of both the Ricardo and H-T sectors have increased while the number of the H-O sectors remains same. the number of the key sectors has substantially increased to eighteen. animal services and cement. NEWSPRINT PETROLEUM PRODUCTS JUTE. Investment in these sectors will be channeled back into the other sectors of the economy. In developed economies. Along with the Heavy chemicals and other chemicals. The number of the Ricardo sectors has substantially increased to six. values of most of the intermediate components are found to be either zero or small in the production structure of the developing and the underdeveloped economies. The development of these sectors as the key sectors of the Indian economy is perhaps be the result of the planned economic development in India. NO. pesticides and industrial machinery. rubber and plastic products etc. TABLE 8: KEY SECTORS WHEN DEMAND LED MODEL USED FOR MEASURING BACKWARD LINKAGES AND SUPPLY LED MODEL USED FOR MEASURING FORWARD LINKAGES ARE USED SL . 14 . VARNISHES AND LACQUERS STRUCTURAL CLAY PRODUCTS CATEGORY RICARDO RICARDO RICARDO RICARDO RICARDO RICARDO H-T H-T H-T H-T H-T H-O H-O H-O H-O H-O H-O H-O When the demand side model for measuring backward linkage and supply side model for measuring forward linkage are used. 28 23 27 20 6 38 29 52 31 44 36 41 35 40 61 30 32 37 KEY SECTORS COAL TAR PRODUCTS PAPER AND PAPER PRODUCTS . hemp and mesta textiles.non ferrous basic metals. degree of integration is found to be high due to high intermediate industry component in the input structure. HEMP AND MESTA TEXTILES ANIMAL SERVICES CEMENT HEAVY CHEMICALS OTHER ELECTRICAL MACHINERY PESTICIDES INDUSTRIAL MACHINERY OTHER CHEMICALS NON FERROUS BASIC METALS SYNTHETIC FIBRE. On the other hand. The other Ricardo key sectors which are added in this case are coal tar products. jute. RESIN IRON AND STEEL ELECTRICITY FERTILIZERS PAINTS. the other H-T sectors identified as key sectors are other electrical machinery. Section 3 ALTERNATIVE APPROACH It has been argued that the production structure of the developed economies differs from that of the underdeveloped and developing economies.

The non-durable sectors are endogenised to form an additional vector in the transaction matrix and the durable sectors are treated as exogenous. greater is the degree of interconnectedness. it would not be justified to identify the key sectors purely in a technological manner. other food products and beverages and cotton textiles have improved significantly in the augmented structure (appendix table H ). Each element of the added column is the ratio of private consumption demand of a sector to the value added. Therefore we can rewrite the open model in the following way. Let Xa represents the transaction matrix in the augmented structure whose last column consists of purchases of non durable commodities by the final users and the last row consists of the value added of the sectors producing the non durable goods. The number of sectors showing strong backward linkages is twenty-eight. Trade shows a strong linkage with the other sectors while in the previous structure it is weakly linked with the rest of the economy. The last row of the augmented matrix shows the value added of the endogenous sectors(non durable sectors) and the last column includes the private consumption demand for the final output of these sectors. It is found from the appendix table G that the absolute values of the backward linkages are increased in the augmented structure. the coefficient matrix is denoted by An. in this case the number of sectors 15 . As the percentage of the intermediate industry components is found to be low. The number of sectors having the linkage values greater than the overall average has declined in the augmented structure. Let us also suppose that fa is the final demand in the augmented structure. which is obtained by subtracting the private consumption demand from the total final demand. The added row consists of the elements. the sectors are divided into two groups.Apart from the linkage analysis. The augmented structure can be represented in the following way. Twelve out of twenty three H-T sectors (around 52% of the H-T sectors) have strong index values while the number of the Ricardo and H-O sectors are six and ten respectively. durable sectors and nondurable sectors. Only the positions of milk and milk products. This generates an augmented matrix of order 73 x 73. In our study the percentage of non-zero coefficients in the original 115 x 115 technical coefficient matrix is 54. Except in one or two cases.59% . there is not much of qualitative change in the character of the sectors. which have the strongest linkage values. each of them is obtained by dividing the value added of a sector by gross output. As far as input based classification of these sectors are concerned H-T sector category once again shows a strong linkage with the other sectors in terms of backward linkages. The backward and forward linkages and linkage indices are given in the appendix tables G and H respectively. xa = [Xa]e + fa where xa is the vector of final output. the percentage of the non-zero coefficients also shows the degree of integration among the sectors. There has been a significant improvement in the absolute values of forward linkages also and the qualitative characters of the sectors have not seen to be changed significantly. Unlike the backward linkages. In the augmented structure. Higher the percentage value. The first column of the appendix table F displays the names of those sectors which produce non durable goods and the second column shows the sectors which produce durable goods. In order to get a better picture.

the sectors qualified as the leading sectors in the augmented structure are trade. affecting significantly the gross output of each sector is important from the point of view of policy making. one and seven respectively. The identification of the component / components of final demand. 16 . PAPER PRODUCTS. The only H-T sector qualifies as the leading sector in this structure is other chemicals. In the augmented structure. H-T and H-O sectors in the strong group are twelve. As the key sectors are supposed to drive the economy towards increasing sectoral interdependence and generate greater growth and development. Among the sectors having strong forward linkages the Ricardo sectors are dominant over the other two categories of sectors. 17 23 19 21 36 66 64 40 41 KEY SECTORS OTHER FOOD PRODUCTS AND BEVERAGES PAPER. other food products and beverages. the components of final demand with greater stimulating effects for these sectors are required to be identified as far as policy-making is concerned. The sectors with linkage values more than the overall average both in terms of forward and backward linkages are known as key sectors. other textiles and cotton textiles. Let us now identify the key sectors in the augmented structure which is based on the same technique as before. newsprint which are also the identified key sectors in the 72 x 72 model. transport services. which is almost similar to the results obtained in the Ghosian framework. the identified key sectors are given in the table 9. non ferrous basic metals. The number of the key sectors in this case is seen to be less than the number of the identified key sectors in the previous cases. The numbers of Ricardo key sectors and H-O key sectors are four each. The numbers of Ricardo. TABLE 9: KEY SECTORS IN THE AUGMENTED STRUCTURE SL NO.showing strong linkages has increased by one. paper and paper products. NEWSPRINT COTTON TEXTILES OTHER TEXTILES OTHER CHEMICALS TRADE TRANSPORT SERVICES IRON AND STEEL NON FERROUS BASIC METALS CATEGORY RICARDO RICARDO RICARDO RICARDO H-T H-O H-O H-O H-O Section 4 DEPENDENCE ON THE COMPONENTS OF FINAL DEMAND The driving force behind the entire analysis of linkages in the input-output static open framework is the final demand. Apart from iron and steel.

A )-1 f (6)] where <x> -1( I .A )-1 f (6) gives the gross output produced not on the domestic soil but in the foreign countries to meet the final import demand generated in the domestic economy .4.While ( I .( I .A )-1 f (i) . Both sides of equation (1) are premultiplied by the inverted diagonal matrix of gross output <x> -1.A )-1 f (4) + ( I .The final demand is defined as follows: Final demand (f) = private consumption demand [f (1)] + government consumption demand [f (2)]+Gross domestic capital formation [f (3)] + change in stock [f (4)] + export demand [f (5)] Import demand [f (6)]. where (I .A )-1 f (4) + ( I . The vector that shows the gross output produced by different sectors to meet total final demand is (I .4. However (I .5. i = 1.3.A )-1 f = ( I .2.A ) final demand. Let us start our discussion on the relative importance of different components of final demand with the Ricardo sectors.4.A ) -1 f = <x> -1 [( I . For the Ricardo key sectors animal services. paper and paper products.A)-1 f (2) + ( I . Table 10 displays the relative strength of each component of final demand in stimulating the gross output of the Ricardo sectors including the key sectors in this category.A)-1 f (6) is different from ( I . i = 1.A )-1 f (5) .A )-1 f (1) + ( I .3.A )-1 f (5) .A )-1 f (3) + ( I .5 shows sectoral output produced in the domestic economy to cater the remaining five different types of final demand. -1 f(i). ( I .A )-1 f (6) ………………………(1). hemp and mesta textiles.A)-1 f (2) + ( I .f (6) ] or. We can write ( I . other textiles.4. jute. private consumption is the most important stimulant for these sectors.2. ( I -A )-1 f = ( I . cotton textiles.3.A )-1 f (i). For example. the same technical coefficient matrix is used to measure the gross output generated to meet the final import demand of the domestic country.5.5. ( I .6 is the vector whose elements are the gross output of different sectors to cater the i-th type of demand . which will show the relative strength of each component of final demand in influencing the gross output of a sector.A )-1 [f (1) + f (2) + f (3) + f (4) + f (5) . However.A)-1 f. i=1. i = 1.A )-1 f (1) + ( I . <x> -1( I .A )-1 f (i) .A )-1 f (3) + ( I . other food products and beverages.A )-1 f(2) gives the vector showing gross output produced by different sectors to meet final government consumption.3. The six components influence the gross output of a sector in varying degrees.6 show the share of gross output generated by i-th components of As most of the Ricardo sectors primarily produce consumer goods.2. news print 17 .2.( I .

However.Paper.0031 0. natural gas 12.2861 f(2) 0.Milk and milk products 6.3531 0.0032 0. wheat.0631 0.5444 2.9705 f(6) 0. hemp.6063 0.Forestry and logging 9.Tobacco products 19.0483 -0. a large amount of nonmetallic minerals is required to be imported to meet both private consumption demand and gross capital 18 . other metallic minerals.9877 0.6970 0.0383 0.0057 0. fishing.0063 0.0020 0.0115 0.0958 0. Both private consumption and capital formation have strong influence on the gross output of crude petroleum and natural gas.Jute. commercial crops.Animal services(agricultural)[Key Sector] 7.0404 0.0139 0.0319 0.0670 0.Leather products 27.2018 0.Wood and wood products 23.0111 0.Coal and lignite 11.0087 0.Other food products and beverages[Key Sector] 18.2453 1.0006 0.0038 0.0039 0. non metallic minerals.1165 f(4) 0. However. the sector has to import an amount of total output which is almost same as the amount of total output required to cater total private consumption.0323 0. coal and lignite.1799 0. & newsprint[Key Sector] 25. wood and wood products.1474 0.0211 0.0246 0. sugar and khandsari boora etc. None of the Ricardo sectors is significantly affected by government consumption. Similarly.0222 0.Paddy 2.9404 0.0056 -0.Wheat 3.2175 0.Crude petroleum. For crude petroleum and natural gas.6594 0.0207 0.Sugar and khandsari boora 17.0741 f(5) 0.2230 0.0336 0.0034 0.0110 0. The only Ricardo key sector significantly affected by the export demand is other non metallic mineral products.0232 0.2032 0.0645 0.0235 0.8058 0.2990 0.8212 0.6660 2.2160 0.0030 0.0242 0.1369 0.0084 0.1233 0.0314 0.0921 0. milk and milk products. paper prods.1714 0.4489 0.0091 -0.0083 0.9725 0. (Table 10) TABLE 10: DEPENDENCE OF RICARDO SECTORS ON DIFFERENT CONPONENTS OF FINAL DEMAND RICARDO SECTORS 1.1010 -0. a large proportion of total output of crude petroleum and natural gas.0523 0. private consumption demand is dominant over the other components of final demand.2988 0.and petroleum products.Coal tar products[key Sector] 38.0038 0.0071 0.7477 0.9723 0.4090 0.0251 0.0757 0.1001 0.3270 0.0995 0.3920 0.5714 0.Other non-metallic mineral prods.0308 0.7607 0.1664 0.0241 0.0079 0.4773 0.0054 0.Commercial crops 5.0703 0.8491 0.6510 3.4752 0.3137 Among the non-key Ricardo sectors a significant proportion of total output of paddy.0694 0.0189 0.0246 0.0865 0. mesta textiles[Key Sector] 21.0230 -0.Other textiles[Key Sector] 22.9399 0.0578 0.0269 0. other metallic minerals and non-metallic minerals is required to be imported.4959 0.Other non metallic minerals 16.0045 0. food and beverages.0064 0.4028 1.0096 0. is produced to cater private consumption only. Gross capital formation significantly affects the output levels of the sectors coal tar products and cement.0041 0.8027 0.1009 0.1262 0.[Key Sector] f(1) 0.Iron ore 13.0219 0.0038 0.5294 0.Other crops 4.0687 0.0425 0.0219 0.0014 0.0047 0.0327 0.0004 0.0006 0.2712 0.0147 0.Cement[Key Sector] 39.0067 0.0480 -0.9130 0.0168 -0.9666 0.3352 0. forestry and logging.Petroleum products[Key Sector] 28.0012 0. a substantial amount of coal tar products are required to be imported to meet the final demand generated by the other five components.1604 0.0974 0.0391 0.0147 f(3) 0.8684 0.0654 0.Fishing 10.Cotton textiles[Key Sector] 20.0031 0.0372 0.Other metallic minerals 14.0101 -0.1713 0.0360 0.0009 0. other crops. tobacco products.8259 0.2371 0.Other livestock products 8.7044 0.0987 0.0149 0.0004 -0.4560 0.0072 0.8682 0.5698 0.1886 0.0001 0.9585 0.9658 0.0755 0.0176 0.0373 0.7992 0.2394 2.0064 0.

9303 0.Education and research 70.3961 0.2123 -0.1064 0.5687 0.4019 1.1530 0.0073 -0. ships and boats.5474 0.0172 0.2865 0.5106 0.1348 0.0087 -0.6093 0.0008 0.2988 0.9103 0.0131 0.0135 0.0070 0. we find that.0992 0.Communication equipments 52.0285 -0.3476 0.2040 -0.0023 0.0003 0. Although efforts have been given to develop machine industry for attaining self-sufficiency and smooth running of the industrialization process.0370 0. TABLE 11: DEPENDENCE OF H -T SECTORS ON DIFFERENT CONPONENTS OF FINAL DEMAND H -T SECTORS 29.1823 0.1751 0.0904 0.1277 0.1819 0. implements 44.1023 0. Private consumption demand is found to be significantly affecting the gross output of other chemicals.0530 0.8442 0.1303 0.9075 0.1129 0.Industrial machinery[Key Sector] 45.Rail equipments 56.0603 0.Ships and boats 55.6411 0.0808 0.Batteries 51. Indian economy is found to be short of this target even after fifty years of planned economic development.3229 0.1769 0.5172 1. electrical wires and cables. machine tools. the impact of export demand on the gross output of all technology intensive sectors is found to be negligible. While studying the relative strength of each component of final demand in influencing the gross output of the key high technology sectors.0005 0.2477 0.1332 0.1837 0.0334 0. rail equipment.0833 -0.1185 0.1433 0.0427 0.0233 0.0005 -0.Heavy chemicals[Key Sector] 31.1698 -0.0189 0. most of these sectors are heavily dependent on imports (Table 11).0001 f(5) 0.2613 0.5697 0. On the other hand.0160 f(4) 0.1996 0. communication equipment.3175 0. ships and boats and motor vehicles gross domestic capital formation generates a substantial direct and indirect requirement of the gross output but except tractor and agricultural machines.Other electrical Machinery[Key Sector] 53.4661 0.Watches and clocks 65.0125 0.3338 0.0043 -0.2142 0.Electrical wires.2315 -0.1578 0.1171 0.6729 0.0841 0.2375 0.1016 -0.0612 0.Other non-electrical machinery 48. other non electrical machines.2490 0.Electronic equipments(incl.9058 1.Motor vehicles 57.Tractors and agri.3739 0.2311 0.0471 0.0155 -0.0331 0.1348 -0.0975 0.0507 0.TV) 54.0507 0.Drugs and medicines 36.2578 0.0393 0.1150 -0.Pesticides[Key Sector] 33.Electrical industrial Machinery 49.2034 0.0002 0.2785 0.Communication 69.Medical and health f(1) 0.0648 0.7339 0.5771 0.8227 1.4174 0.0000 0.1356 0.6625 f(2) 0.0121 0.5521 1.1922 0.0695 0.2667 0.3776 1.4887 0.4230 0.0026 0.1604 0.4664 0. Apart from Ricardo key sector other non-metallic mineral products.3680 0.0101 f(6) 0.0015 0. private consumption and gross capital formation could have been the potential stimulants for heavy chemicals and for other electrical machinery and industrial machinery respectively but these sectors also are found to be heavily dependent on imports.4872 0.0146 0.0374 1.2333 1.0205 0.Office computing machines 47.1006 0.6387 1.1234 0.0536 0. tractor and agricultural machines.3255 0.Machine tools 46.3172 f(3) 0.1238 0.Other chemicals[Key Sector] 43. export demand is also dominant over the other components of final demand for leather products and iron ore. For most of the H-T sectors like both electrical and non electrical industrial machines.0588 0.8889 0.formation.0732 0.0543 0.3085 -0.0900 -0.3374 0.0371 0.5324 0.0059 19 .cables and appliances 50. machine tools. electrical wires and cables.Other transport equipment 58.

Hand tools & other metal pdts [Key 0.O SECTORS ON DIFFERENT CONPONENTS OF FINAL DEMAND H-O SECTORS f(1) f(2) 0.0840 0.5430 0.0369 -0.0000 f(6) 0.1476 0.0219 0. hand tools and other metal products and paints . structural clay products and construction.2282 0.0377 0.0006 0.8408 0.0022 0.2804 41.0230 0.0003 -0.0676 0.0000 f(4) 0.4041 0.8473 0.Paints.5649 37.0458 0.Iron and steel[Key Sector] 0.3579 0.0097 -0.Finally.7354 35.0117 0.0696 0.Synthetic fibers.0009 -0.Water supply 0.1190 0. electricity.2674 0.0608 0.1507 0.4667 42.2000 0. the sector producing non-ferrous basic metals has to depend on import in order to satisfy the direct and indirect requirement of its output generated by the other components of final demand.Structural clay products[Key Sector] 0. synthetic fiber and resin.0719 0. resin[Key Sector] 0.2593 0.0980 40.0630 0.0414 1.0493 -0.2345 0.4442 0. While capital formation significantly stimulates the gross output levels of the H-O sectors like iron and steel.0278 0.0369 0.6594 66.Hotels and restaurants 0.Rubber and plastic products[Key Sector] 0.Miscellaneous manufacturing 0. non ferrous basic metals.1230 0.0729 0.0320 0.Soaps.1171 0. trade (Table 12).3401 0.7851 26.0030 0. soaps. banking and insurance and other services and for key sectors like fertilizers. None of the key sectors is found to be significantly affected by export demand.6064 71.8878 63.6343 62.0299 0.Electricity[Key Sector] 0.0335 0.Other services 0.8907 0. varnishes and lacquers.4531 0.4397 30.Tea and coffee processing 0.0000 -0.0823 0.1435 0.1359 0. varnishes and lacquers[Key 0.0935 0. For public administration only government consumption demand plays a key role.1212 0.Trade[Key Sector] 0. transport services.4274 60.1149 0.2244 0.5098 0.0113 0.0000 f(3) 0.0567 0.3712 64.1636 0. cosmetics and glycerin.3364 0.Tarnsport services[Key Sector] 0.0025 -0.0606 0.0148 0.1028 0.3195 0.1627 0.7768 68.3320 Sector] 34.1149 0. cosmetics & glycerin 0.1614 0.Printing and publishing 0.0934 0.1481 0.1355 0.0803 0. tea and coffee processing.1355 0.0062 0.Fertilizers[Key Sector] 1.0000 20 .4766 Sector] 59.0139 0.8057 0.4736 0.0001 0.0000 f(5) 0. Miscellaneous manufacturing is the only H-O sectors whose gross output level is affected by the changes in export demand but not in a substantial extent.0056 0.2767 0. gas.0607 0.6450 0.0042 0.6606 24.2119 0. in the case of Heckscher-Ohlin sectors we find that private consumption acts as a stimulant for printing and publishing.6682 67.1715 0. TABLE 12 : DEPENDENCE OF H .0389 0.0295 0.0497 0.0534 0.0704 0. both capital formation and private consumption are the stimulants for the activities for rubber and plastic products.0720 0.0032 0.1673 0.0000 15.0041 0.Public administration 0.0043 0. hotels and restaurants.2261 0.0930 61.5007 0.0612 0.2985 0.0099 0.0030 0.0014 -0.0022 -0.1556 0.1456 32.1372 0. However.0157 0.Gas 0.8834 72.0580 0.Banking and insurance 0.Non-ferrous basic metals[Key Sector] 0.Construction[Key sector] 0.

high . The key sectors are also identified within the augmented structure where the non durable sectors are endogenised with an objective to obtain better results of the linkage analysis for a developing country like India. coal tar products etc have shown strong linkage in terms of both forward and backward linkages. Services like trade and transport services and capital-intensive sectors like fertilizers.Section 5 Summary and conclusion The study explores the structure of the Indian economy with a classification of sectors which is based on the resource (natural resource. other textiles. most of the Ricardo sectors are found to be either strongly or weakly linked with the rest of the economy. paints. Heckscher . The relative strength of linkages of the three categories of sectors i. synthetic fiber and resin etc have qualified as key sectors of the Indian economy.e. highly productive and modernized economy. The H-T sectors are found to be strongly integrated with other sectors in terms of backward linkages but are weakly linked in terms of the forward linkages.Ohlin sectors have been studied and the key sectors of the Indian economy are identified. The identified key sectors display a structure of the Indian economy which is neither traditional nor a highly modernized one. Most of the H-O sectors have also shown strong backward linkages and weak forward linkages. varnishes and lacquers. the components of final demand. Ricardo sectors.technology sectors. jute. However. particularly the agricultural crops and other primary sectors have shown weak linkage strength while the agro-based industries have a relatively higher linkage effects. coal tar products and petroleum products and among H-O key sectors non-ferrous basic metals are seen to be dependent on import to some extent. which are the driving force behind the growth of a particular sector. Along with it. hemp and mesta textiles. the share of the H-T sectors slightly improves in the supply led model.Output methodology has been used as it offers important insights into the structure of economies. The number of H-T key sectors in twenty-seven key sectors. The development of these basic industries as channels of transmitting the benefits of growth is. For this purpose Input . the consequence of the attempt to diversify the production structure of the Indian economy over the years. The study of the structure of the Indian economy reveals that the capital intensive basic industries like iron and steel. The agro based industries like cotton textiles. electricity. Investment in these sectors can speed up the industrialization process. no doubt. However. The study of exploring the structure of Indian economy reveals the following results. among the Ricardo key sectors. identified in 21 . highly interconnected. The role of the high technology sectors in the production structure of the Indian economy is an insignificant one. Finally. research and development and labour & capital) intensively used in the production process. non ferrous basic metals. construction etc are supposed to play the role of engine in the process of growth. In spite of that India is definite not a well diversified. are identified for all sectors. paper and paper products and other resource intensive sectors like non metallic mineral products. as such sectors will stimulate greater economic activities in other sectors.

industrial machinery and other electrical machinery are found to be heavily dependent on import. broad based industrial and infrastructure sectors. industrial organizations and structures in various countries of the world during the decade of late eighties and nineties. the developing countries have to prepare themselves to face the challenges of international competitiveness. while the numbers of Ricardo and H-O sectors are ten and twelve respectively. Although India is possessing a large domestic market. is only five. But development of indigenous technology is the indispensable necessity at this hour.three different models. On the other hand none of the H-T sectors are found to be significantly dependent on export demand. This requires attainment of higher growth in productivity. among the technology intensive sectors pesticides and other chemicals are seen to have greater multiplier effect on growth and development but heavy chemicals. With the dramatic and momentous changes in the nature of markets. But while facing the trend of globalization. This is important for attaining self-reliance and also for cost reduction and the production of the high quality goods required for both internal consumption and export. institutions. So modernization and further diversification of the production structure is the necessity to face the challenges arising out from the recent changes in the world economy. Moreover. In order to achieve success in the path of globalization Indian producers should improve their competitiveness. In order to introduce better and improved technology the government is permitting all foreign collaboration proposals related to the import of high technology. abundant supply of cheap labour. India has also started to respond to all these changes particularly to the increasing globalization of economic reforms. Industries should be encouraged to develop their own technology by research and development. Otherwise. improved quality products and innovations in products. 22 . India would emerge as a producer of resource intensive goods instead of producer of high technology and capital goods which would be inconsistent with dynamics of economic growth. a huge number of educated and trained manpower and adequate natural resources to attain competitiveness India has yet to reap the benefits of such changes to the fullest extent. The New Economic policy has been providing high priority to the introduction of modern techniques in production system.

Other non metallic minerals 15. & name of the aggregated sector 1 Paddy 1.Wheat 3 4 5 6 7 17 8 9 10 11 12 13 14 15 16 18 19 20 21 22 23 24 25 26 27 28 29 Jowar Bajra Maize Gram Pulses Other crops Sugarcane Groundnut Jute Cotton Tea Coffee Rubber Coconut Tobacco Milk and milk products Animal services(agricultural) Other livestock products Forestry and logging Fishing Coal and lignite Crude petroleum.Other metallic minerals 30 Lime stone 31 Mica 32 Other non metallic minerals 37 Tea and coffee processing 33 Sugar 34 Khandsari.Paddy 2 Wheat 2. & name of sector in the original Input-Output table for the year 1993-1994 Sl no.Commercial crops 5.APPENDIX TABLE A: SCHEME FOR AGGREGATION Sl no.Coal and lignite 11.Other food products and beverages 23 .Sugar and khandsari boora 17.Milk and milk products 6.Fishing 10.Other crops 4.Iron ore 13.Animal services(agricultural) 7.Other livestock products 8.Forestry and logging 9. natural gas 12. boora 35 36 38 39 Hydrogenated oil(vanaspati) Edible oils other than vanaspati Miscellaneous food products Beverages 14.Crude petroleum.Tea and coffee processing 16. natural gas Iron ore Manganese ore Bauxite Copper ore Other metallic minerals 3.

Drugs and medicines 34.Iron and steel 41. paper prods.Paints. & name of the aggregated sector 40 Tobacco products 18. paper prods.Soaps.Synthetic fibers.Structural clay products 38.Tobacco products 41 Khadi. 72 Iron.APPENDIX TABLE A: SCHEME FOR AGGREGATION Sl no.Cotton textiles 20.Heavy chemicals 30. 22.Other chemicals 37. & newsprint 24. resin 36.Fertilizers 31.Jute.Other non-metallic mineral prods.Non-ferrous basic metals 24 .Petroleum products 28.Paper. hemp.Other textiles 50 Furniture and fixtures-wooden 51 Wood and wood products 52 Paper. synthetic fiber textiles Carpet weaving Readymade garments Miscellaneous textile products 19. cosmetics & glycerin Synthetic fibers. steel and ferro alloys 73 Iron and steel casting & forging 74 Iron and steel foundries 75 Non-ferrous basic metals 40. varnishes and lacquers Drugs and medicines Soaps. varnishes and lacquers 33. & name of sector in the original Input-Output table for the year 1993-1994 Sl no. & newsprint 53 Printing and publishing 54 Leather footwear 55 Leather and leather products 56 Rubber products 57 Plastic products 58 Petroleum products 59 Coal tar products 60 Inorganic heavy chemicals 61 Organic heavy chemicals 62 63 64 65 66 67 68 69 70 71 Fertilizers Pesticides Paints.Pesticides 32. cosmetics & glycerin 35. mesta textiles 43 44 45 47 48 49 Woolen textiles Silk textiles Art silk. mesta textiles 21.Leather products 26. hemp.Printing and publishing 25.Cement 39.Coal tar products 29. cotton textiles(handlooms) 42 Cotton textiles 46 Jute.Rubber and plastic products 27.Wood and wood products 23. resin Other chemicals Structural clay products Cement Other non-metallic mineral prods.

Hand tools and other metal products 78 Tractors and agri.Machine tools 46.Education and research 70.Trade 67.Industrial machinery 45.Communication 66.Tractors and agri. cycle-rickshaw 96 Other transport equipments 97 Watches and clocks 98 Miscellaneous manufacturing 99 Construction 100 Electricity 101 Gas 102 Water supply 103 Railway transport services 104 Other transport services 106 Communication 107 Trade 108 Hotels and restaurants 109 Banking 110 Insurance 112 Education and research 113 Medical and health 57.Watches and clocks 59.Electricity 62.Electrical industrial Machinery 85 Electrical wires & cables 87 Electrical appliances 86 88 89 90 91 92 93 Batteries Communication equipments Other electrical Machinery Electronic equipments(incl.Communication equipments 52. implements 44.Other transport equipment 58.Construction 61. & name of the aggregated sector 76 Hand tools.Other non-electrical machinery 48.Water supply 64.Ships and boats 55.Hotels and restaurants 68.TV) 54.TV) Ships and boats Rail equipments Motor vehicles 49.Rail equipments 56. & name of sector in the original Input-Output table for the year 1993-1994 Sl no.Medical and health 25 .Motor vehicles 94 Motor cycles and scooters 95 Bicycles.Gas 63.Electronic equipments(incl. implements 79 Industrial machinery(F & T) 80 Industrial machinery(others) 81 82 83 84 Machine tools Office computing machines Other non-electrical machinery Electrical industrial Machinery 43.cables and appliances 50.Tarnsport services 65.Other electrical Machinery 53.Miscellaneous manufacturing 60.Batteries 51.Electrical wires. hardware 77 Miscellaneous metal products 42.APPENDIX TABLE A: SCHEME FOR AGGREGATION Sl no.Office computing machines 47.Banking and insurance 69.

Other services 114 Other services .APPENDIX TABLE A: SCHEME FOR AGGREGATION Sl no. & name of sector in the original Input-Output table for the year 1993-1994 Sl no. & name of the aggregated sector 105 Storage and warehousing 111 Ownership of dwellings 71. 115 Public administration 72.Public administration 26 .

15 Tea and coffee processing 24 Printing and publishing 26 Rubber and plastic products 30 Fertilizers 32 Paints. resin 37 Structural clay products 40 Iron and steel 41 Non-ferrous basic metals 42 Hand tools and other metal products 59 Miscellaneous manufacturing 60 Construction 61 Electricity 62 Gas 63 Water supply 64 Transport services 66 Trade 67 Hotels and restaurants 68 Banking and insurance 71 Other services 72 Public administration 27 . 29 Heavy chemicals 31 Pesticides 33 Drugs and medicines 36 Other chemicals 43 Tractors and agri. implements 44 Industrial machinery 45 Machine tools 46 Office computing machines 47 Other non-electrical machinery 48 Electrical industrial Machinery 49 Electrical wires.TV) 54 Ships and boats 55 Rail equipments 56 Motor vehicles 57 Other transport equipment 58 Watches and clocks 65 Communication 69 Education and research 70 Medical and health SL HECKSCHER-OHLIN SECTORS (22) NO. 1 Paddy 2 Wheat 3 Other crops 4 Commercial crops 5 Milk and milk products 6 Animal services(agricultural) 7 Other livestock products 8 Forestry and logging 9 Fishing 10 Coal and lignite 11 Crude petroleum. SL HIGH TECHNOLOGY SECTORS (23) NO.APPENDIX TABLE B: CLASSIFICATION OF SECTORS ON THE BASIS OF INPUT USAGE SL RICARDO SECTORS (27) NO. cosmetics & glycerin 35 Synthetic fibers. mesta textiles 21 Other textiles 22 Wood and wood products 23 Paper. paper prods.cables and appliances 50 Batteries 51 Communication equipments 52 Other electrical Machinery 53 Electronic equipments(incl. natural gas 12 Iron ore 13 Other metallic minerals 14 Other non metallic minerals 16 Sugar and khandsari boora 17 Other food products and beverages 18 Tobacco products 19 Cotton textiles 20 Jute. & newsprint 25 Leather products 27 Petroleum products 28 Coal tar products 38 Cement 39 Other non-metallic mineral prods. varnishes and lacquers 34 Soaps. hemp.

2327 2.2324 2.7337 2.1528 2.4455 2.1516 1.2514 2.1163 1.4350 2.5842 2.3009 1.0728 1. hemp.8326 4.2555 2.8166 3.1869 1.5272 2. Leontief Backward Leontief Backward Linkages(Q) Linkage Indices(I1) CV1 2.9936 4.0348 1.9535 3.4917 2.9338 3.2796 3.0412 4.9642 3.4301 2.1577 1.1476 1.1405 1.1025 1.3671 4.7064 2. varnishes and lacquers 47 Other non-electrical machinery 33 Drugs and medicines 35 Synthetic fibers.9052 4. LINKAGE INDICES AND COEFFICIENT OF VARIATION Sl no.5675 2.7097 3.1766 1.3099 2.5359 2.4238 3.1365 1.2935 4.4478 2.2318 2.5420 2.2038 1.1486 1.2552 3.2563 2.0021 4.2776 2.1089 4.1755 1.2775 2.3644 2.0471 1.1784 2.0268 4.1681 1.8551 3.7651 4.1758 1.2229 1.3727 2.9981 3. cosmetics & glycerin 53 Electronic equipments(incl.4158 4.0822 1.4692 2.4823 4.1103 1.1178 1.9596 4.0137 4. SECTORS 40 Iron and steel 31 Pesticides 28 Coal tar products 44 Industrial machinery 41 Non-ferrous basic metals 43 Tractors and agri.cables and appliances 42 Hand tools and other metal products 6 Animal services(agricultural) 23 Paper.1862 1.4084 2.5209 2.3325 3.4721 2.0732 1.2342 1.0845 1.3808 4.3896 2.4257 3.5218 2. implements 30 Fertilizers 49 Electrical wires.7469 3.5045 2.1848 1.1006 4. & newsprint 34 Soaps.3874 2.5440 2.1977 1.1538 4.0842 1.0731 1.5799 3.0323 5.4277 4.0948 1.1704 1.4129 2.1256 4.2117 1.5737 4.4678 2.3326 2.7071 3.1212 1.2219 1.3223 2.0399 1.3917 3.4648 2.1089 1. paper prods.7543 3.2122 1.3933 4.1709 4.9414 4.8910 4.2148 1.2937 2.1633 2.2195 28 .3254 2.2189 1.2422 1.APPENDIX TABLE C : LEONTIEF BACKWARD LINKAGES .5968 3.4462 2. mesta textiles 61 Electricity 60 Construction 27 Petroleum products 16 Sugar and khandsari boora 39 Other non-metallic mineral prods.TV) 50 Batteries 36 Other chemicals 56 Motor vehicles 57 Other transport equipment 48 Electrical industrial Machinery 45 Machine tools 21 Other textiles 54 Ships and boats 26 Rubber and plastic products 52 Other electrical Machinery 32 Paints.6412 3.8592 4.1883 1. resin 51 Communication equipments 25 Leather products 29 Heavy chemicals 38 Cement 46 Office computing machines 15 Tea and coffee processing 19 Cotton textiles 17 Other food products and beverages 59 Miscellaneous manufacturing 55 Rail equipments 24 Printing and publishing 58 Watches and clocks 20 Jute.0948 1.3957 2.3140 1.1598 1.

3007 1.4902 5.7938 6.4031 1.9587 0.5473 1.4435 6.3821 1.1935 1.2164 1.9945 1.8671 0.8039 1.4672 1.4853 29 .5183 6.0037 0.0259 2.4329 6.3403 1.6912 0.5224 6.6745 0.6210 0.4379 1.0290 5.4329 4.5859 6.5945 0.5847 0.5737 0.0000 1. LINKAGE INDICES AND COEFFICIENT OF VARIATION Sl no.7782 0.3116 1.8342 0.5967 5.5088 1.9740 7.2589 5.0885 2.4070 6.2920 1.1331 8.7354 1.0424 6.9637 0.9738 0.0880 2.1488 5.5681 4.6587 7.8429 1.2508 4.6252 0.2652 6.7021 0.7252 0. SECTORS 37 Structural clay products 70 Medical and health 67 Hotels and restaurants 64 Transport services 18 Tobacco products 2 Wheat 22 Wood and wood products 1 Paddy 10 Coal and lignite 63 Water supply 12 Iron ore 71 Other services 7 Other livestock products 13 Other metallic minerals 3 Other crops 66 Trade 62 Gas 4 Commercial crops 5 Milk and milk products 65 Communication 9 Fishing 14 Other non metallic minerals 11 Crude petroleum.0974 6.4265 5.4807 4.7735 0.0039 1.7052 0.6091 1.6644 0.6189 1.8490 0.4607 1.1948 4.2369 1.7438 0.7662 1.3196 1.6226 5.7418 5.6443 0.8858 0.6305 0.6343 0.APPENDIX TABLE C : LEONTIEF BACKWARD LINKAGES .2854 5. natural gas 68 Banking and insurance 69 Education and research 8 Forestry and logging 72 Public administration Leontief Backward Leontief Backward Linkages(Q) Linkage Indices(I1) CV1 2.0048 1.

1862 2.7767 3.8723 6.9002 5.2411 4.5992 1.2055 2.5501 2.4721 2.5760 2.3648 5.6368 0.4734 1.5073 1.7232 1.2695 3.1417 1.0466 1.6749 0.7245 0. cables and appliances 1 Paddy 31 Pesticides 57 Other transport equipment 48 Electrical industrial Machinery 25 Leather products 55 Rail equipments 6 Animal services(agricultural) 17 Other food products and beverages 2 Wheat 52 Other electrical Machinery 13 Other metallic minerals 51 Communication equipments Leontief Forward Leontief Forward Linkages(R1) Linkage Indices(I2) CV2 8.3675 1.5313 4.6711 2.8612 5.6649 2.6818 0.7147 1.1284 3.2494 8. LINKAGE INDICES AND COEFFICIENT OF VARIATION Sl.6573 0.7437 3.2921 1.8687 1. resin 42 Hand tools and other metal products 26 Rubber and plastic products 60 Construction 14 Other non metallic minerals 59 Miscellaneous manufacturing 65 Communication 30 Fertilizers 21 Other textiles 22 Wood and wood products 47 Other non-electrical machinery 33 Drugs and medicines 8 Forestry and logging 44 Industrial machinery 19 Cotton textiles 32 Paints.8767 6.2839 1.2312 4.6280 5.2689 2.6398 5.3951 1.2203 6.9445 2.2685 7.6767 1.4445 3.8283 0.3911 2.1034 7.6706 0.6102 1.0906 1.9423 0.3238 1.3310 1.7687 0.6211 0.5304 8.7562 6.8128 3.no SECTORS 66 Trade 64 Tarnsport services 61 Electricity 40 Iron and steel 68 Banking and insurance 11 Crude petroleum.6658 2.2070 4.4769 2.6652 1.4451 6.9605 1.8154 1.5316 1.8608 1.3553 1.6125 6.0653 2.4997 6.1883 1.7584 1.8877 3.6221 0.4957 5.0419 1.0240 1.5037 1.8429 5.8059 0.1904 7.3702 3.3249 1.2382 1.8098 6.6218 0.9838 0.9653 3.8242 0.4813 5.8874 0.2787 1.6482 7.9009 4.8335 0.2744 6.6757 1.0601 0.7685 1.8951 3.4862 3.7339 1.7726 0.2634 5.1384 1.3090 2.8004 0.6146 0.8501 0.9074 3.6398 0.8614 7.6996 0.0732 3.1543 2.4554 1.6371 7.6547 0.6286 5.6073 1. varnishes and lacquers 7 Other livestock products 28 Coal tar products 56 Motor vehicles 49 Electrical wires.3621 1.6363 0.5458 4.APPENDIX TABLE D : LEONTIEF FORWARD LINKAGES .1046 7.2624 3.1660 6.2942 1.8461 1.1494 1. paper prods.6581 3. & newsprint 35 Synthetic fibers.4040 1.2937 1. natural gas 3 Other crops 71 Other services 29 Heavy chemicals 41 Non-ferrous basic metals 10 Coal and lignite 4 Commercial crops 36 Other chemicals 27 Petroleum products 23 Paper.7362 0.5661 3.8712 3.6515 0.4184 1.2107 3.5105 30 .

1316 1.1065 8.2056 1.1746 7.1186 1.8641 8.1181 1.no SECTORS 5 Milk and milk products 39 Other non-metallic mineral prods.2461 7.1414 1.6614 7.0062 1.2872 7.1671 1.5610 0.2425 1.0441 1.9652 7. LINKAGE INDICES AND COEFFICIENT OF VARIATION Sl.5494 0.4837 0. mesta textiles 70 Medical and health 63 Water supply 58 Watches and clocks 54 Ships and boats 34 Soaps.5486 0.5911 0.5024 0.1780 1.5183 0.0065 1.4768 8.5413 0.5335 0. 24 Printing and publishing 67 Hotels and restaurants 38 Cement 43 Tractors and agri.4853 31 . implements 20 Jute. cosmetics & glycerin 45 Machine tools 15 Tea and coffee processing 53 Electronic equipments(incl.TV) 16 Sugar and khandsari boora 37 Structural clay products 12 Iron ore 9 Fishing 18 Tobacco products 46 Office computing machines 50 Batteries 62 Gas 69 Education and research 72 Public administration Leontief Forward Leontief Forward Linkages(R1) Linkage Indices(I2) CV2 1.5130 0.0343 7.4838 0.2298 1.1261 1.2267 1.8397 7. hemp.2914 8.5637 0.5973 0.1196 7.5347 0.8991 7.6019 8.8707 7.4807 6.0673 1.5019 0.1429 1.4303 8.2810 7.5374 0.0453 1.7103 8.0942 1.5223 0.4797 8.5662 0.4297 8.1098 1.5795 0.5896 0.4475 8.2132 8.1726 1.0000 0.0866 1.5439 0.0282 1.1123 1.APPENDIX TABLE D : LEONTIEF FORWARD LINKAGES .5260 0.3556 7.9448 7.5377 0.4942 0.0784 1.

2227 7.7077 4.8572 6.7247 0.7483 1.0425 1.8615 0.8603 0.7094 1.0406 1.0922 2.0353 2.8165 1.8843 3.3724 5.0431 1.3190 3.8534 0.9307 1.4212 5.7461 4.4054 3.0691 3.5645 1.8683 4.4740 1.7353 0.8439 0.0310 2.8768 1.APPENDIX TABLE E : GHOSHIAN FORWARD LINKAGES. paper products and newsprint Synthetic fiber and resin Other electrical machinery Electricity Iron and Steel Other chemicals fertilisers Petroleum products Pesticides Banking and Insurance Iron ore Jute .8219 4.9215 0.6665 1.8820 3.2305 5.1183 2.1509 1.9740 2.9502 5.5634 3.7345 2.6357 3.4559 4.6198 2.4797 4.8979 0.1525 1.2757 2.2933 2.0024 3.5108 2.2157 3.2701 2.1594 3.4482 1.0955 3.2862 2.7168 3. varnishes and lacquers Communication Industrial machinery Structural clay products Wood and wood products Cement Hand tools and other metal products Rubber and plastic products Rail equipment Transport services Office computing machines Miscelleneous manufacturing Water supply Commercial crops Electrical wires.5139 4.3304 1.5810 1.2765 4.4350 1.8795 1.5312 5.9023 2.8944 0.4603 2.7621 3.9513 1.2233 3.6041 1.6421 4.4124 1.7835 0. cables and appliances Drugs and medicines Trade Machine tools Forestry and logging Other non electrical machinery Printing and publishing Communication equipment Electrical industrial machinery Motor vehicles Other crops Other transport equipment Ghosian Forward Ghosian Forward Linkages(R2) Linkage Indices(I3) CV3 8.8014 0.8066 32 .7794 1.1957 1.2995 4. hemp and mesta textiles Animal services(agricultural) Paints.0479 1.8971 4.5585 6.3725 3.2062 2.4236 1.9590 1.9310 0.6439 4.8327 0.8828 3.6236 4.8412 1.0104 1.6432 4.0112 0.6065 2.1305 3.6102 1.7859 1.7691 3.8962 3.7381 0.9329 0. LINKAGE INDICES AND COEFFICIENT OF VARIATION Sl no.9709 0.5144 2.2558 2.9590 0.3652 2.1175 5.1277 1.3632 1.1288 3.9154 4.0512 1.7593 0.9366 5.4554 1.6566 1.0814 2.1578 2.5610 5.7250 5.1947 1. 14 11 29 28 10 13 41 23 35 52 61 40 36 30 27 31 68 12 20 6 32 65 44 37 22 38 42 26 55 64 46 59 63 4 49 33 66 45 8 47 24 51 48 56 3 57 SECTORS Other non metallic minerals Crude petroleum and natural gas Heavy chemicals Coal tar products Coal and lignite Other metallic minerals Non ferrous basic metals Paper.5638 3.2122 3.2534 1.2431 4.1058 3.5237 4.8619 1.0656 4.6086 2.7171 0.1784 3.5349 4.6883 2.1751 3.

3314 1.5861 7.6103 0.0606 6.0259 6.8049 7.1912 1.6538 0.5176 0.1842 1.3828 1.8877 7.5547 8.5428 0.4264 1.1712 1.9922 7.4468 8.4853 33 .1956 1.4612 0.6053 0.3946 1.5460 0.5852 8.5954 0.9509 7.8307 5. LINKAGE INDICES AND COEFFICIENT OF VARIATION Sl no.5983 0.4809 0.8787 5.2989 1.7160 0.5689 0. 54 19 50 71 39 21 25 43 67 7 2 1 60 70 16 15 34 17 58 5 9 53 62 18 69 72 SECTORS Ships and boats Cotton textiles Batteries Other services Other non metallic mineral products Other textiles Leather products Tractor and agricultural implements Hotels and restaurants Other live stock rpoducts Wheat Paddy Construction Medical and Health Sugar and khandsari boora Tea and coffee processing Soaps.5621 1.3859 7.4615 1.5368 0.0492 1.6799 0.1578 1.1595 1.2290 7.3836 7.4451 8.2712 7.4062 6.1697 1.6699 0. cosmetics and glycerin Other food products and beverages Watches and clocks Milk anf milk products Fishing Electronic equipment Gas Tobacco products Education and Research Public administration Ghosian Forward Ghosian Forward Linkages(R2) Linkage Indices(I3) CV3 1.3054 1.7209 6.5307 0.1251 1.6338 0.5361 0.5315 0.4893 1.5480 0.4833 1.3205 1.6770 0.6392 0.6024 7.3346 7.1412 1.6826 0.2411 1.7547 7.1292 1.0000 0.5231 0.4359 7.APPENDIX TABLE E : GHOSHIAN FORWARD LINKAGES.4769 1.1391 7.0063 1.5157 0.3681 5.4584 6.

1 Paddy 2 Wheat 3 other crops 4 commercial crops 5 Milk and milk products 6 Animal services(agricultural) 7 Other livestock products 8 Forestry and logging 9 Fishing 10 Coal and lignite 11 Crude petroleum. mesta textiles 21 other textiles 22 wood and wood products 23 Paper. paper prods. natural gas 12 Iron ore 13 other metallic minerals 14 other non metallic minerals 15 Tea and coffee processing 16 sugar and khandsari boora 17 other food products and beverages 18 Tobacco products 19 cotton textiles 20 Jute. & newsprint 24 Printing and publishing 25 leather products 26 rubber and plastic products 28 Coal tar products 30 Fertilizers 31 Pesticides 32 Paints. hemp. resin 36 Other chemicals 37 Structural clay products 59 Miscellaneous manufacturing 61 Electricity 62 Gas 63 Water supply 64 transport services 65 Communication 66 Trade 67 Hotels and restaurants 68 banking and insurance 69 Education and research 70 Medical and health 71 other services 72 Public administration SL NO. 27 29 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 60 DURABLE SECTORS Petroleum products heavy chemicals Cement Other non-metallic mineral prods.APPENDIX TABLE F: CLASSIFICATION OF SECTORS IN THE AUGMENTED STRUCTURE SL NON DURABLE SECTORS NO.TV) Ships and boats Rail equipments Motor vehicles other transport equipment Watches and clocks Construction 34 . cosmetics & glycerin 35 Synthetic fibers. iron and steel Non-ferrous basic metals hand tools and other metal products Tractors and agri. implements Industrial machinery Machine tools Office computing machines Other non-electrical machinery Electrical industrial Machinery electrical wires.cables and appliances Batteries Communication equipments Other electrical Machinery Electronic equipments(incl. varnishes and lacquers 33 Drugs and medicines 34 Soaps.

0071 3.0072 1.0581 1.0164 1.9664 2.0394 1.0389 1.1606 3.9228 0.0268 1.7248 2.0482 1.7616 2.5836 2.8606 2.6394 2.9100 2.1067 1.5650 3. cables and appliances Transport services Rubber and plastic products Tea and coffee processing Drugs and medicines Leather products Motor vehicles Electronic equipments Other transport equipment Batteries Electrical industrial machinery Paints.9450 0.0277 1.9089 0.0295 3.9834 2.8676 2.7481 3.7466 2.0199 1.0408 1.9399 0.8223 2.9874 0.7535 2.8242 2.9612 0.8931 2.0140 1.0765 1.9304 2.0014 0.8447 2.0472 1.9217 2.1711 3.7827 2. varnishes and lacquers Electricity Machine tools Other electrical machinery Synthetic fiber and resin Jute.0521 1.7031 2.9924 2.7951 2.0421 1. paper products and newsprint Ships and boats Industrial machinery Fertilisers Other food products and beverages Soaps .0094 1.1952 3.1111 1.0040 2.1025 1.5862 2.0053 3.0049 1.0083 1. hemp and mesta textiles Cement Other non electrical machinery Office computing machines Sugar and khandsari boora Heavy chemicals Other crops Communication equipments Miscellaneous manufacturing Printing and publishing Hotels and restaurants Watches and clocks Other services Construction Backward Linkage Indices 3.9035 2.9902 0.6723 2.9862 0.7344 2.8734 2.7436 2.9665 0.0588 1.9975 0.9550 0.9887 0.9996 0. 6 40 31 28 36 21 23 54 44 30 17 34 43 41 66 42 19 49 64 26 15 33 25 56 53 57 50 48 32 61 45 52 35 20 38 47 46 16 29 3 51 59 24 67 58 71 60 SECTORS Animal services(agricultural) Iron and steel Pesticdes Coal tar products Other chemicals Other textiles Paper .0514 1.0656 1.8947 2.0072 1.8283 2.9742 0.8320 2.8355 2.8124 2. cosmetics and glycerin Tractors and agricultural implements Non ferrous metal products Trade Hand tools and other metal products Cotton textiles Electrical wires.9107 0.7003 2.1684 1.8872 2.8595 2.0039 1.9660 0.9006 2.APPENDIX TABLE G: BACKWARD LINKAGE INDICES IN THE AUGMENTED STRUCTURE Backward Linkages Sl No.5894 2.1514 3.9571 0.9713 0.9069 35 .

8782 0.5279 0.5309 0.5235 1.0016 1.5134 1.8538 0.6167 1. 70 55 1 37 18 39 27 2 22 7 10 5 4 68 12 63 13 69 62 72 65 9 11 14 8 SECTORS Medical and health rail equipments Paddy Structural caly products Tobacco products Other non metallic mineral products Petroleum products Wheat Wood and wood products Other livestock products Coal and lignite Milk ana milk products Commercial crops Banking and insurance Iron ore Water supply Other metallic minerals Education and research Gas Public administration Communication Fishing Crude petroleum and natural gas Other non metallic minerals Forestry and logging Backward Linkages Backward Linkage Indices 2.1015 2.0484 2.9174 1.6413 0.8625 0.7226 0.5121 0.7856 1.5337 0.0711 2.5120 2.6982 0.6255 0.4371 2.7179 0.5864 1.3704 0.4975 0.8187 0.4402 2.8916 0.8499 0.5938 1.8347 1.3401 2.4194 1.4824 36 .5179 1.5527 0.6461 0.4056 2.APPENDIX TABLE G: BACKWARD LINKAGE INDICES IN THE AUGMENTED STRUCTURE Sl No.5661 0.7730 1.4574 1.9046 0.8526 0.5597 0.4340 2.5470 2.6696 0.5274 2.7354 0.

8628 0.5387 1.9003 4.5145 3.7686 2.0552 1.7816 0.9579 0.1628 1.8580 3.0654 2.2701 1.6895 0.9791 0.9198 2.0691 1.4246 3.7705 8.6729 1.1636 2.7844 0. 66 64 3 61 71 40 68 4 11 29 1 10 41 36 5 27 17 23 21 19 35 60 2 26 7 42 30 59 65 8 14 22 33 67 47 69 70 6 44 16 32 9 56 25 SECTORS Trade Transport services Other crops Electricity Other services Iron and steel Banking and insurance Commercial crops Crude petroleum and natural gas Heavy chemicals Paddy Coal and lignite Non ferrous basic metals Other chemicals Milk and milk products Petroleum products Other food products and beverages Paper .3875 2.5158 1.5831 0.6913 0.6475 0.5684 2.9436 0.0743 2.5168 1.0005 0.0631 7. paper products and newsprint Other textiles Cotton textiles Synthetic fiber and resin Construction Wheat Rubber and plastic products Other livestock products Hand tools and other metal products Fertilisers Miscellaneous manufacturing Communication Forestry and fishing Other non metallic minerals Wood and wood products Drugs and medicines Hotels and restaurants Other non electrical machinery Education and research Medical and health Animal services (agricultural) Industrial machinery Sugar and khandsari boora Paints .5525 2.9790 0.9128 1.7740 1.9982 0.6317 0.0843 8.3939 1.2198 3.4007 2.6807 0.7090 2.1636 1.6505 2.1110 1.4443 1. varnishes and lacquers Fishing Motor vehicles Leather products 13.9282 0.5195 1.8836 1.5458 37 .2830 3.6092 0.7819 0.2376 1.5482 0.0248 4.9079 1.7481 1.6857 1.7539 1.0308 9.5102 4.8532 4.6411 0.5491 0.9582 2.7550 4.6111 2.4823 7.1696 3.6134 1.1704 2.8570 3.6196 0.9964 3.6046 0.7918 1.1576 12.7709 1.3478 3.3942 1.7092 2.7145 1.APPENDIX TABLE H: FORWARD LINKAGE INDICES IN THE AUGMENTED STRUCTURE Forward Linkages Forward Linkage Indices Sl No.7621 2.8676 0.1943 3.

4451 1. cosmetics and glycerin Tea and coffee processing Other electrical machinery Communication equipment Other metallic minerals Other non metallic mineral products Jute .1355 1.1324 1.4904 1.2206 1. 28 24 31 49 18 55 57 48 34 15 52 51 13 39 20 38 43 63 54 45 58 53 37 12 62 46 50 72 SECTORS Coal tar products Printing and publishing Pesticides Electrical wires.4683 0.4411 0.4723 0.3918 0.1445 1.3068 1.0000 0.0843 1.5222 0.0510 1.4187 1.2958 1.1167 1.0474 1.5127 0.3070 1.4723 0.4326 0.1971 1.3984 0.4092 0.3785 0.4597 1.3614 38 . cables and appliances Tobacco products Rail equipments Other transport equipments Electrical industrial machinery Soaps .3744 0.1877 1.5052 0.2983 1.4040 1.4692 0.4104 0.3834 1.4993 1.5418 0.5074 0.4036 0.2114 1.4136 0.5386 0.APPENDIX TABLE H: FORWARD LINKAGE INDICES IN THE AUGMENTED STRUCTURE Forward Linkages Forward Linkage Indices Sl No.3798 0. hemp and mesta textiles Cement Tractors and agricultural implements Water supply Ships and boats Machine tools Watches and clocks Electronic equipment Structural clay products Iron ore Gas Office computing machines Batteries Public administration 1.1023 1.2664 1.4292 0.4999 0.4577 0.4378 0.5409 0.0361 1.5275 0.4967 1.3980 1.

2390-2397.References: Bharadwaj K (1966): ‘A Note on the Structural Interdependence and the Concept of a Key Sector. Leontief W (1951): ‘The Structure if the American Economy 1919-1939’. pp. CSO: Input-Output Transaction Tables. pp. pp. 39 . Oxford Bulletin of Economics and Statistics. 1999. Hazari B(1970): ‘Empirical Identification of key sectors of the Indian economy’. Reflections on the Indian Economy’. pp. Government of India. 2003. 27. 73-84. U. Kyklos. Ghosh A (1964) : ‘Experiments with Input-Output Model’. Department of Statistics. Ministry of Planning. Review of Economics and Statistics. Sastry D V S. Cambridge University Press. Kaushik Bhattacharya and N K Unnikrishnan(2003):Sectoral Linkages and Growth Prospects. Dhawan S and K K Saxena (1992): ‘Structural Linkages and Key Sectors of the Indian Economy’. 46. 417-424. 195-210. Central Statistical Organisation. June 14. February 13. Oxford University Press. 19. Cella G (1984): ‘The Input-Output Measurement of Interindustry linkages’. New York. pp.K. B L Mungekar and G A Tadas (1999): ‘Import Liberalisation Hurting Domestic Industry and Employment?’. Indian Economic Review. 2nd edition. 173-195. Economic and Political Weekly. Economic and Political Weekly. Nambiar R G. 52(3). Balwant Singh.

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