The Input-Output model is a quantitative economic model which represents the interdependencies of various sectors in an economy. Wassily Leontief was awarded a Nobel Memorial Prize in Economic Sciences “for the development of the input-output method and for its application to important economic problems”. A key use of the input-output model is in computing the effects of the change in demand of a sector on other sectors in an economy. The Ministry of Statistics and Programme Implementation (MoSPI) provides Supply and Use Tables (SUTs) for India, and using the latest publication of SUT 2015-16, the Input-Output Transactions Table 2015-16 has been constructed.
The Input-Output transactions table provides details of total outputs of non-fuel ores and minerals including iron ore, manganese ore, bauxite, copper ore, other metallic minerals, lime stone, mica, and other non-metallic minerals. The total output of each of the ores and minerals comprises of cost incurred on inputs used (goods and services), net indirect taxes paid, and incomes earned by factors of production (gross value added). The transaction flows also provide information on the usage of these ores and minerals in the production processes of other sectors of the economy, and, in particular, manufacturing sectors. The values of exports and imports are also available in this table. The information provided in the input-output table can be used to compute backward and forward linkages of the mining sectors as well as income, output and employment multipliers.
This discussion note details the format of the Supply and Use Tables (SUTs), the methodology and uses of the Input-Output Table, the assumptions made and the limitations of the methodology. This is a draft to seek comments, please send your feedback to Ganesh Sivamani at firstname.lastname@example.org