Output Growth in Post Liberalized India: An Input–Output Structural Decomposition Analysis

  • K. K. Saxena
  • Sarbjit Singh
  • Rahul Arora


Over time, with changes in the structure of the economy, economic activities will expand and these structural changes are the prerequisite for development. For the Indian economy, it was in mid 1991 when the process of adjustment and reforms was initiated with greater zeal. The present study analyzes the sources of output growth from 1993–1994 to 2006–2007. The time point falls in the period of the ongoing reforms, and the period since then is long enough to attempt an assessment. The method of demand-side decomposition of output growth within an input–output framework has been utilized. The output growth over the study period has been divided into four components, viz, growth in output due to average growth of final demand, growth in output due to changes in the composition of the final demand, growth in output due to changes in input–output coefficients, and growth in output due to interaction of the change in final demand and change in technology.


Output Growth Government Consumption Indian Economy Average Growth Rate Private Consumption 
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© Springer India Pvt. Ltd. 2013

Authors and Affiliations

  1. 1.Department of Humanities and Social SciencesIndian Institute of TechnologyKanpurIndia

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