SOCIAL ACCOUNTING MATRIX FOR INDIA

Abstract

This paper provides the latest Social Accounting Matrix (SAM) of the year 2003–2004 for the Indian economy with a wide variety of disaggregation for the Energy sector and the sectors that are relevant for environmental and climate policy evaluation. This SAM shows the interaction between production, income, consumption and capital accumulation. It can be used to provide an analysis of the interrelationship between the production structure of an economy and the distribution of incomes and expenditures of different household groups. In addition, it can be used for multiplier analysis to capture direct, indirect and induced impact on input use due to any exogenous changes in the economy. This SAM consists of 85 sectors of the economy, three factors of production and nine categories of occupational households. The Indian economy is becoming structurally biased towards capital intensive sectors, such as service and energy production. The energy production sector itself is the most energy intensive sector as of 2003–2004.

Keywords:

• SAM
• India
• Climate sensitive sectors
• Energy consumption by household category
• Energy intensity

Acknowledgements

We are grateful to Professor M.R. Saluja of the India Development Foundation for providing critical comments during the construction process of the SAM. We would like to thank the Ministry of Environment and Forests, Government of India for funding the study. Finally authors are grateful to NCAER for giving this opportunity to work on this particular subject.

Notes

The views presented here are those of the authors and not of the institutes to which they belong.

¹ See Appendix 1 for its schematic structure.

² See www.mospi.nic.in for details about PFCE of 130 sectors.

³ A part of the reason is that public administration and defence is clubbed in the service sector in our aggregation exercise.