A Short-Term Planning Model for the Indian Economy

Abstract

HE purpose of this paper is to present a T short-term planning model for the Indian economy. It involves (a) the formulation and implementation of an input-output model for India, closed with respect to all household consumption except that originating from government employees, and (b) an endogenous determination of the distribution of consumption expenditure among several groups of households, each group having a specific consumption pattern. The paper is divided into three sections. An attempt is made in section I to classify the economy into several sectors. In section II, we calculate the intersectoral transfers of intermediate products as well as final goods and services. Section III presents the planning model and considers the possibilities of using it for planning purposes.

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