Estimation of SAM for India: An Application for India’s Energy Transition Targets

Abstract

The social accounting matrix (SAM) for India was historically constructed based on the input–output table (IOT). However, since 2011–2012, the Government of India has been publishing the supply–use table, instead of the IOT. While the erstwhile IOT, published by the Government of India, had the same number of products and industries, the supply–use table provides one ‘supply matrix’ and one ‘use matrix’, each of which is a rectangular table with 140 products and 66 industries (for 2018–2019). Converting the supply–use table to a square IOT and subsequently extending it to SAM require the utilisation of various data sources, numerous steps and adjustments. Despite the usefulness of both IO and SAM matrices in macroeconomic policy design, not much literature is available on these. This study aims to bridge the gap by constructing IOT and SAM for India from the supply–use table incorporating information from many other sources and describing the method of construction of the matrices. Our IO and SAM also focus on various energy sectors, including different sources of power generation, biomass and so on, and disaggregate energy-intensive sectors like cement or aluminium, considering the immense usefulness of the energy-extended macro-structure to the research of energy and environment policies. The study focuses on the construction of a 59 × 59 SAM for India, with the base year of 2021–2022 incorporating three factors of production and ten categories of households. As an application of the newly constructed SAM, we have analysed the employment implication of India’s Nationally Determined Contribution emission commitments. JEL Codes: E16, C67, D57