Trends in Technical Progress in India – Analysis of Input-Output Tables from 1968 to 2003

Abstract

The paper is based on the 8 Input – Output (I-O) tables for the Indian economy available over a period of 36 years from 1968-69 to 2003-04. The technical progress (TP) in the context of the I-O tables is based on the concept of a production function defining the relationship between gross output and material inputs as well as value added at the disaggregated sectoral level. The paper attempts to answer the following questions: (i) Was the TP substantial and continuous throughout the period?; (ii) Was the rate of TP during the inward looking and outward looking growth strategy phases of the economy the same?; and (iii) Was the rate of TP at the disaggregated sectoral level almost constant over time? In order to measure the rate of TP, the available eight national I-O tables in India are first made compatible for the number, scope and definitions of sectors as well as for prices by converting them at constant 1993-94 prices. Chenery-Watanabe coefficient is used for measuring the rate of TP for different sectors across the 8 IO tables. [Working Paper No. 2009-11-02]Input-Output (I-O), Technical Progress, Technical coefficients, Indian economy, Liberalization, Globalization