Industry Specific Multipliers to Identify Key Industries of Indian Economy: An Application of Input Output Analysis
Using the interindustry input output tables of Indian economy obtained from World Input Output Database (Timmer et al., 2015) for the period 1995-2009, the study attempts to estimate the industry specific multipliers of Indian economy and further identifies the key industries with greatest output andemployment potential. The output and employment multipliers are analyzed after constituting a closed and open Leontief demand driven input output model. The open Leontief model gives type I multipliers of output and employment while closed Leontief model gives type II multipliers. These models are open and closed with respect to household sector. Thus, the study enables the comparative analysis of multiplier effects in terms of employment and output generation for each industry within the Indian economy. The results reveal that Agriculture, hunting, forestry and fishing output and employment , Food beverages and tobacco, Textiles and textile products, Retail trade, except of motor vehicles and motorcycles; repair of household goods, Private households with employed persons are important industries of Indian economy.
