ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Is Indian Industry Demand or Supply Constrained

Is Indian Industry Demand or Supply Constrained? Ashok Kumar Lahiri Prannoy Roy The growth of Indian industry has been held by some to be limited 'supply constraints' and shortages in savings resulting from an inadequacy in the production of capital goods. On the other hand, the question has been raised by others whether there is not some role for 'demand' as a factor constraining growth. The aim of this paper is to provide a systematic empirical test to identify the years (if any) in which the Indian industrial sector was demand constrained and those in which it was supply constrained.

The Industrial Sector in India-A Quantitative Analysis

A Quantitative Analysis Ashok Kumar Lahiri Srinivasa Madhur Dipankar Purkayastha Prannoy Roy This paper attempts an empirical investigation of the factors affecting output, prices, wages and raw material costs in the factory sector of Indian industry. It forms part of a larger system of equations which together constitute a macro-econometric model of the Indian economy The focus of the study is on the price-quantity adjustment mechanism in Indian industry with specific attention to the role of government policies and international trade in the determination of output and prices. Since there has been considerable diversity in the behaviour of the different constituents of the industrial sector in India, the model is constructed in a disaggregated four-sector framework classified on the basis of end-use: consumer goods, capital goods, basic goods and intermediate goods.
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