International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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Inter-Industry Linkages in Economy of Himachal Pradesh: Study of Backward and Forward Linkages Using Input-Output Analysis

Author(s) Reena Dogra, Aprajita Kimta
Country India
Abstract The industrial sector in Himachal Pradesh has become a powerhouse, contributing significantly to the state's economic growth, with MSMEs playing a dominant role. The state's commendable performance in business rankings and its leadership in the startup ecosystem underscore the crucial significance of its industrial sector in fostering innovation and creating a conducive environment for business growth and development. Understanding inter industry linkages among different sectors is critical for economic growth. Therefore, this research paper investigates the interconnectedness and interdependency among various sectors within the economy of Himachal Pradesh. Drawing upon input-output analysis methodologies, the study explores backward and forward linkages to identify key sectors driving economic development in the region. Utilizing the input-output table from the fiscal year 2017-18, the study employs both Leontief and Ghosh models to assess sectoral connections. The determination of backward and forward linkages was conducted through the application of Rasmussen and Chenery-Watanabe methods, while the identification of key sectors was accomplished using the Hirschman criteria. Findings revealed that significant interconnections are lacking in several primary activities. Industries with predominantly strong backward and forward linkages are mainly concentrated within the manufacturing sector. Examination of inter-industry connections reveals that the forward linkages of services typically demonstrate greater strength compared to their backward linkages.
Keywords input-output, backward linkages, forward linkages, key sector, Himachal Pradesh
Published In Volume 7, Issue 1, January-February 2025
Published On 2025-02-25
DOI https://doi.org/10.36948/ijfmr.2025.v07i01.37702
Short DOI https://doi.org/g86w8k
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