A Technical Note to The Eighth Plan of India (1992-97)

Abstract

From Preface: Indian planning process is extremely complex, it involves outlining the strategies for development and the supporting policy environment, working out the macro-parameters for the growth and its sectoral pattern, allocation of resources between centre and states and for different sectoral activities, detailed allocation of budgetary support and consideration of specific projects/programmes and schemes in the public sector. Formalised modelling is used for working out the macro-parameters for growth and its sectoral pattern and allocation of resources for different sectoral activities. Since the Fifth Plan, the numerical exercises and the technical work at the back of the formulation of the plan are being presented separately in the form of a technical note. The technical note outlines the methodology of plan formulation in detail by capturing the diverse inter-relationships of forces and factors that lie behind the national plan and describe in detail the various assumptions, techniques and analysis that form the basis of the plan From this point of view, the technical notes have been found very useful. The Eighth Plan Technical Note is the fourth in this series. This note describes in detail the technical work that went behind formulation of the Eighth Plan and contains eight chapters. Chapter-1 presents the mathematical framework of the multi-sectoral input-output model which is used to derive mutually consistent sectoral output targets and corresponding sectoral investment demands. A set of sub-models have been used to assess the impact of those vanables which are not adequately captured through the input-output frame. Chapter-2 describes demography and employment. Chapter-3 describes the financial resources sub-model. A detailed description of the determination of the agricultural output targets are provided in Chapter-4. Chapter-5 gives industry sub-model. The methodology adopted for projections of export and import are covered under trade sub- model in Chapter-6. Chapter-7 outlines the method of estimation of sectoral private consumption in consumption sub-model.