Analyzing inter-sectoral linkages in India

The paper examines the inter-sectoral linkages among the three major sectors- agriculture, industry and service- of Indian economy using the input-output framework. We observed that the inter-sectoral linkages have been undergoing structural changes during the pre- and post-reform periods. The ‘agriculture-industry’ linkage has not only been deteriorating over the years, it has undergone directional changes as both the production and demand linkages, which were primarily from industry to agriculture in the pre-reform period, transformed to agriculture to industry in the post-reform period. While there has not been any significant interdependence between agriculture and service sectors, there is strong interdependence between industry and service sectors and it has improved in the post-reform period.