Technical changes in Indian Economy as Evident from Input-Output Tables 1993-94 and 2003-04

 

 

Pradip Biswas, Panchanan Das

 and Parthasarathi Banerjee

 

Input-output tables published by the CSO, Ministry of Statistics and Programme Implementation, Government of India, provide details of the use of the output of one industry/sector by all the other industries/sectors and the use of the outputs of all the individual industries/sectors as inputs by each industry/sector for its production. The data on input is in terms of factor costs and cannot indicate quantity of respective inputs. The Input-Output table also provides technology matrix where each column represents different amounts of the various commodities shown in the rows required to produce one unit of the commodity represented by the column.

A change in the elements of a column vector of the technology matrix over an interval of time represents technological changes in the production of the commodity. This is because of two immediate reasons: first, technological changes in the input-consuming commodity production allow changes in inputs; and second, technological changes in some or all of the input commodities allow substitution or other kinds of changes in the input-vector constituents or in their relative weights. Changes in the technology matrix therefore exhibit technological changes. Moreover, the factor constituents or individually each input has been captured in terms of factor cost. With the assumption that a technological change brings about changes in relative prices we might argue that changes in input constituents do reflect technological changes as captured through the changes in relative prices of the constituents in the vector. In other words, we might argue that innovation is about bringing about changes in relative prices. This definition of innovation captures the bargaining strength of respective producers in a vector or in the total I-O matrix under two scenarios of pre- and post-innovation as the explanatory factor of the shifts in the vectors over time.

 

Innovation in the economy 

More importantly, large number of descriptions of innovation remains limited to novelty within a firm or at the most within a sector or within a competition milieu (as in the industrial organization approach). The fact that a firm or a sector is embedded within a larger matrix of input-output and that changes within the former are bound to create repercussions within this I-O matrix have often been overlooked. The new I-O matrix would therefore be a post-innovation scenario. A sector or even a single firm therefore can trigger innovations down the technology vector. In the inter-sector framework, innovation in one sector would thus entitle that sector to cheaper capital, cheaper better resources, larger market and most importantly better or monopoly price entitling that innovator to the innovator’s profit. In other words, it could be even zero sums that one firm’s/sector’s gains are compensated for by the loss of another or many. Innovation is thus the dynamic engine operating a shift in the economic structure. In another word a restructured economy is an innovated economy. In a two period system of two matrices this structural shift can be captured to indicate whether the economy as a whole has innovated or failed to do so.

However, multiple theoretical positions and polemical stands inform us that the judgment on overall economic innovation is liable to be normative or even prescriptive. Only in the simplest case we could capture shifts without making a judgment. Several normative definitions prevail; for example, increase in gross value adding in an economy could be one definition of innovation. This increase, however, might have caused lower factor-cost contribution by several sectors of the economy. We would in this description refrain from making inferences on the innovativeness of the overall shift in these two period matrices, and we would simply describe the shifts in the inputs as descriptors of corresponding changes in both technology and relative prices.    

 

Capturing innovation in the economy           

We can analyse the nature of technological changes in different commodities between 1993-94 and 2003-04.  There is, however, one difficulty in interpreting the changes – the coefficients are expressed not in quantity terms but in value terms.  This would, in other words, mean changes in the money values of the different commodities required to produce Rupee one worth of the commodity.  Change in a column of the technology matrix is therefore an interaction of the changes in technology parameters (reflected through changes in quantity of input or substitution or an upward version of the previous commodity) and prices of the commodities including own price of the commodity concerned. Coefficients, we may therefore argue, capture innovations – that is technological changes in the broader sense of quantity consumed per unit, substitution, changes in organizational processes, changes in competitive strength or in relative prices, or even changes in the bargaining power or relative prices of the consuming commodity (that is who is using the inputs).

In the following sections we describe such changes in agricultural commodities, and in several types of feedstocks, machine tools and other mother machineries. In each case, we describe apart from a few categories of inputs such as of machine tools, the changes in energy consumption. Therefore we describe simultaneously a picture of the overall economy’s dynamics in energy intensity. In other words, the following description is partially normative because we have chosen changes in a few select inputs, such as energy, feedstock including agricultural inputs, machine tools and other mother machineries.

 

Technological changes in relation to food crops:    In the case of food crops paddy, wheat, maize and pulses are studied.  Excepting the maize, all the other three crops have experienced substantial raise in input consumption (Table 1) per unit value of output between 1993-94 and 2003-2004.  The increment is highest for wheat (0.40 to 0.65), followed by paddy (from 0.39 to 0.58) and pulse (from 0.41 to 0.51).  In all the three cases the increase in input value per unit value of output has occurred primarily due to higher value of inputs coming from food crops which in turn reflects high increase in the prices of seeds, an industrial input. Uses of inputs from allied agricultural products, chemical products, agricultural machineries and transport equipment have been low but increased marginally. Energy input has increased substantially for rice, and for wheat in fact input of electricity has fallen, for both maize and pulses the energy has remained relatively low. In all the cases inputs from industry has risen (less so for maize) and correspondingly the inputs of innovations in non-agricultural sectors have raised their relative share in the consumption by food crops production system. 

 

 

Table 1:  Food Crops

Inputs

Paddy

Wheat

Maize

Pulses

 

 

 

 

 

 

 

 

Food crops

0.157

0.291

0.122

0.376

0.041

0.040

0.135

0.238

Allied Agriculture

0.006

0.014

0.002

0.001

0.016

0.006

0.011

0.024

Chemical

0.086

0.103

0.106

0.118

0.055

0.095

0.050

0.045

Other machinery

0.077

0.079

0.097

0.101

0.048

0.067

0.044

0.026

Transport equipment

0.000

0.001

0.001

0.000

0.001

0.000

0.001

0.000

Total inputs

0.393

0.582

0.400

0.653

0.273

0.278

0.408

0.514

 

 

 

Technological changes in relation to non-food crops:    Among the non-food crops sugarcane, jute, cotton and tobacco are analysed.  Input value per unit value of output increased substantially for sugarcane (from 0.16 to 0.34) and cotton (from 0.21 to 0.42) and moderately for jute (from 0.14 to 0.21) and tobacco (from 0.14 to 0.16) (Table 2).  We have considered the changes in the uses of selected inputs, namely, food crops, allied agricultural products, chemical products, machinery other than machine tools and transport equipment.  The last two types of inputs are not at all used for the production of these crops. 

 

 

Table 2: Non-food crops

Inputs

Sugarcane

Jute

Cotton

Tobacco

 

 

 

 

 

 

 

 

Food crops

0.052

0.158

0.000

0.000

0.000

0.000

0.000

0.000

Allied Agriculture

0.003

0.004

0.020

0.007

0.014

0.003

0.005

0.002

Chemical

0.032

0.080

0.015

0.058

0.061

0.086

0.045

0.050

Other machinery

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Transport equipment

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Total inputs

0.156

0.342

0.141

0.209

0.214

0.425

0.138

0.159

 

 

Use of chemical inputs however increased in most of the cases.  Use of allied agricultural products as inputs has increased only in sugar cane but declined in all other cases.  Food crops as inputs found only for sugarcane where it increased substantially, from 0.052 to 0.158. In contrast to food crops inputs from industrial system in non-food crops had marginal rise over this period and the production system of non-food crops remained more indifferent than in the case of food crops. Similarly, energy consumption by all this non-food crops was significantly lower than was the case for food crops, especially cotton consumed the least energy, jute too consumed little.

 

Technological changes in relation to allied agricultural activities:   In allied agricultural activities, input value per unit of output value increased only for other livestock products (from 0.32 to 0.44) and rest of the cases it either remained constant (eg. forestry product at 0.096 and fishing at 0.15) or declined (milk and milk products from 0.22 to 0.19) as shown in Table 3. Use of food crops for the produce of per unit value of milk and other livestock products declined. Use of food products is quite high for milk and other livestock products, which marginally declined in the latter. Perhaps, relative prices of food crops that go into milk production declined indicating, as it appears that these input sectors had lower or no innovation and also that part of the input were through non-market. Use of transport equipment per unit output declined in allied agricultural products and wood products but the use of textile product increased in these industries.

 

 

Table 3: Allied agricultural activities

                           

Inputs

Milk and milk
products

Other livestock
products

Forestry and
logging

Fishing

 

 

 

 

 

 

 

 

Food crops

0.013

0.008

0.050

0.013

0.000

0.000

0.000

0.000

Allied Agriculture

0.003

0.002

0.000

0.001

0.004

0.002

0.020

0.014

Food Products

0.014

0.014

0.027

0.025

0.000

0.000

0.004

0.005

Textiles

0.009

0.005

0.001

0.001

0.001

0.001

0.024

0.035

Wooden Furniture & Products

0.000

0.000

0.000

0.000

0.000

0.000

0.005

0.001

Chemical

0.000

0.001

0.002

0.002

0.000

0.000

0.005

0.000

Transport equipment

0.000

0.000

0.000

0.000

0.004

0.005

0.030

0.020

Total inputs

0.217

0.190

0.320

0.443

0.096

0.096

0.154

0.149

 

 

 

Overall decline in industrial inputs might also indicate the immunity from innovated industrial products of much of non-farm economic activities, and also possibly in the case of milk, the better bargaining power wrested by the milk cooperatives. For energy inputs and intensity, once again milk and other livestock products did not consume marketed energy while for forestry and fishing the energy consumption rose only marginally.

                                                                                                                                                          

Technological changes in relation to agro-processed industries:      In agro-processed industries sugar, vanaspati, edible oils, beverage & tobacco have been examined and it is noted that the input values per unit of output value declined only for vanaspati and tobacco products and increased in the rest of the cases.  However, the input values are very high for both the set of years indicating very high level of consumption of industrial inputs. In sugar, the use of food crops, allied agricultural products and textiles as inputs per unit value declined and that of food products, wooden furniture, chemical and other machinery increased (Table 4). Major decline in the use of input by vanaspati took place for food crops and chemicals whereas the increase is substantial for the inputs like food products and wooden furniture.

 

 

Table 4: Sugar, Oil, beverage and tobacco products

Inputs

Sugar

Hydrogenated oil
(vanaspati)

Edible oils other
than vanaspati

Beverages

Tobacco products

 

 

 

 

 

 

 

 

 

 

Food crops

0.531

0.433

0.097

0.080

0.543

0.154

0.024

0.003

0.000

0.000

Allied Agriculture

0.003

0.000

0.000

0.000

0.001

0.000

0.001

0.001

0.069

0.039

Food Products

0.007

0.023

0.105

0.184

0.011

0.046

0.060

0.229

0.001

0.016

Beverage and Tobacco

0.000

0.000

0.000

0.000

0.000

0.000

0.017

0.055

0.042

0.090

Textiles

0.012

0.001

0.007

0.001

0.002

0.001

0.001

0.010

0.004

0.002

Wooden Furniture & Products

0.001

0.004

0.004

0.009

0.002

0.003

0.020

0.001

0.006

0.008

Chemical

0.009

0.009

0.106

0.012

0.009

0.006

0.040

0.062

0.015

0.018

Other machinery

0.005

0.031

0.000

0.002

0.001

0.002

0.009

0.009

0.023

0.005

Total inputs

0.778

0.828

0.882

0.836

0.777

0.816

0.555

0.661

0.585

0.505

 

 

 

Decline in the consumption of food crops reflect decline in relative prices, perhaps, and such decline would indicate lower level of technological changes in the declining inputs. For edible oils, use of inputs like food crops, allied agricultural products and textiles declined and that of food products increased per unit of output value.  Similarly, for beverage, use of food crops and wood products as inputs declined substantially whereas the use of food products, beverage & tobacco, textiles and chemicals increased per unit value of output. Tobacco products industry is able to reduce consumption of allied agricultural products, textiles and other machinery as inputs per unit value of its output. However, the use of food products in beverage & tobacco, wooden furniture and chemical increased. In contrast to food crops, in all the agro-processed industries the use of food crops declined per unit value of output. This indicates relative decline in the prices of food crops vis-à-vis agro-processed crops inter alia this indicates lower outcome of innovation for food crops vis-à-vis agro-processed crops.

Both allied agricultural products and agro-processed industries are the major source of living for off-farm occupations of hundreds of million in the country. Breaking down the inputs into three broad types of food crops, allied agricultural including from agro-processed, and the industry – we might observe that mechanization or technological improvements as reflected in the degree or level of consumption of inputs from industry with embedded technologies have rather often stagnated or declined though marginally.

 

 

Technological changes in relation to textiles:

 

Table 5 (a): Textile industries

Inputs

Khadi, cotton
textiles (handlooms)

Cotton
textiles

Woollen
textiles

Silk
textiles

 

 

 

 

 

 

 

 

Allied Agriculture

0.000

0.000

0.001

0.000

0.089

0.078

0.128

0.003

Textiles

0.254

0.270

0.077

0.129

0.281

0.270

0.156

0.163

Wooden Furniture & Products

0.002

0.001

0.000

0.002

0.002

0.001

0.004

0.002

Leather footwear & Products

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Chemical

0.016

0.010

0.047

0.017

0.056

0.008

0.025

0.174

Machine tools

0.001

0.000

0.000

0.000

0.001

0.000

0.003

0.000

Other machinery

0.010

0.007

0.007

0.012

0.007

0.068

0.013

0.002

Total inputs

0.472204

0.593872

0.748774

0.75908

0.720196

0.714191

0.570011

0.682486

 

 

 

Table 5 (b): Textile industries

Inputs

Art silk, synthetic
fiber textiles

Jute, hemp,
mesta textiles

Carpet
weaving

Readymade
garments

Miscellaneous
textile products

 

 

 

 

 

 

 

 

 

 

Allied Agriculture

0.009

0.000

0.000

0.000

0.002

0.000

0.000

0.000

0.009

0.001

Textiles

0.290

0.193

0.041

0.043

0.199

0.227

0.411

0.349

0.298

0.235

Wooden Furniture & Products

0.004

0.004

0.001

0.001

0.002

0.003

0.001

0.005

0.001

0.003

Leather footwear & Products

0.000

0.000

0.000

0.000

0.000

0.001

0.005

0.002

0.000

0.013

Chemical

0.142

0.261

0.021

0.005

0.017

0.016

0.032

0.029

0.078

0.049

Machine tools

0.000

0.000

0.001

0.000

0.002

0.025

0.000

0.004

0.000

0.022

Other machinery

0.009

0.007

0.027

0.011

0.002

0.029

0.008

0.019

0.011

0.034

Total inputs

0.717

0.813

0.680

0.643

0.422

0.588

0.651

0.713

0.660

0.658

 

 

 

In textile industries, khadi, silk textiles, silk carpet weaving and readymade garments witnessed increase in input consumption per unit values of output whereas for cotton textiles, woolen textiles, jute textiles and miscellaneous textiles products there has been marginal change in input consumption per unit value of output. In Khadi, the uses of textiles and chemical inputs have increased whereas wooden furniture, machine tools and other machinery declined substantially per unit value of output and that of textiles, chemical products and machine tools increased. In art silk and synthetic fibres, the major increase occurred for the inputs from chemical products and the major decline occurred for the inputs like textiles, and other machinery. Predominance of a few petro-chemicals producers enabled them to raise relative prices of their products. Machine tools and other machinery as inputs declined in Khadi, silk and art silk& synthetic fibres, and jute whereas they increased substantially in carpet weaving readymade garments, and miscellaneous products.  In garments the use of textiles as inputs declined to a large extent per unit value of output reflecting larger value addition to fabric or changes in relative bargaining positions of the garmenting and fabrication sectors. 

 

Technological changes in relation to furniture, wood products, etc.:    The industry groups furniture, wood & wood products, paper, leather, food processing and leather products - have reduced the use of other machinery as input per unit of value of output. Printing and publishing too has reduced consumption of machine tools while increasing marginally the consumption of other machinery as its input. The same pattern is noted with respect to the use of allied agricultural products as input. The use of chemical products increased for furniture and wood & wood products and declined for paper, printing, leather footwear and leather & leather products. In fact the input of products directly from industry has decreased in most of the sectors wood and wood products, and similar. Input of allied agriculture has increased marginally though for furniture, wood products, paper, leather and leather products. Increased price of the inputs from allied agriculture possibly reflect more the organizational changes in the commodities business. To recall, in the above case of milk, cooperatives appear to have exercised power and similarly, corporate control over a few commodities is a likely cause for increase in price. In other words the degree of control that organized production can exercise influences the technological changes in sectors that are less organized. In wooden furniture and wood products and leather and leather products energy inputs in the unit value of their outputs increased whereas it declined in the case of paper and paper products, printing and publishing and leather footwear.

 

 

Table 6: Furniture, wood, paper, printing and leather industries

Inputs

Furniture and
fixtures-wooden

Wood and
wood products

Paper, paper prods.
& newsprint

Printing
&publishing

Leather
footwear

Leather and
leather products

 

 

 

 

 

 

 

 

 

 

 

 

Allied Agriculture

0.129

0.138

0.238

0.251

0.044

0.086

0.001

0.000

0.053

0.156

0.106

0.127

Food Products

0.000

0.000

0.000

0.000

0.000

0.003

0.003

0.000

0.001

0.000

0.000

0.000

Textiles

0.005

0.016

0.004

0.001

0.014

0.003

0.004

0.004

0.017

0.010

0.005

0.010

Wooden Furniture
& Products

0.107

0.022

0.060

0.015

0.016

0.020

0.003

0.008

0.007

0.001

0.002

0.001

Leather footwear
& Products

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.172

0.157

0.281

0.221

Chemical

0.056

0.093

0.020

0.026

0.081

0.056

0.047

0.044

0.050

0.026

0.061

0.005

Machine tools

0.000

0.001

0.000

0.000

0.001

0.001

0.001

0.000

0.000

0.000

0.001

0.000

Other machinery

0.012

0.011

0.005

0.004

0.004

0.003

0.006

0.009

0.009

0.006

0.007

0.006

Total inputs

0.465

0.544

0.510

0.504

0.739

0.726

0.565

0.605

0.624

0.625

0.726

0.687

 

 

 

Technological changes in relation to rubber, chemical and others: In rubber products the total input consumption per unit value of output has slightly increased over the period (Table 7).  Among its inputs major increment is found for chemical, and major decline is found for textiles.  For the plastic products the share of inputs in unit value of output increased significantly although the use of chemical and other machinery declined. Total inputs cost decreased for petroleum products and for coal tar products. Energy intensity declined for rubber, petroleum and coal tar.

 

 

Table 7: Rubber, plastic petroleum and coal products

Inputs

Rubber  products

Plastic products

Petroleum products

Coal tar products

 

 

 

 

 

 

 

 

Allied Agriculture

0.000

0.000

0.000

0.000

0.000

0.000

0.001

0.001

Textiles

0.074

0.019

0.010

0.004

0.000

0.000

0.003

0.000

Wooden Furniture & Products

0.003

0.002

0.002

0.003

0.001

0.000

0.002

0.001

Leather footwear & Products

0.001

0.001

0.000

0.000

0.000

0.000

0.000

0.000

Chemical

0.246

0.322

0.414

0.451

0.016

0.006

0.064

0.049

Machine tools

0.001

0.001

0.001

0.000

0.001

0.000

0.001

0.000

Other machinery

0.008

0.006

0.003

0.003

0.001

0.001

0.005

0.007

Total inputs

0.735

0.754

0.604

0.741

0.846

0.738

0.965

0.844

 

 

 

Among the chemical industries major increase in the value of input per unit output is found for inorganic heavy chemicals, organic heavy chemicals, fertilizers, synthetic fibres & resins primarily due to increase in consumption of chemical products (Table 8). Drugs & medicines and other chemicals also moderately raised consumption of chemicals per unit value of their output. Pesticides, paints, varnishes and lacquers, soaps, cosmetics and glycerin reduced consumption of chemical products but the first and last groups reduced total input consumption in unit value of output. This would again reflect the corporate control of the industries wielding greater market power and thus the ability to raise relative prices. Use of machine tools as input declined in all those industries for each unit value of output.  The share of other machinery as input in the unit value of output declined in organic heavy industries and drugs but increased for pesticides, paints & varnishes, soaps and other chemicals. Excepting inorganic heavy chemicals, fertilizers and other chemicals, all the groups reduced energy intensity.

 

 

Table 8 (a): Chemical industries

Inputs

Inorganic heavy
chemicals

Organic heavy
chemicals

Fertilizers

Pesticides

Paints, varnishes
and lacquers

 

 

 

 

 

 

 

 

 

 

Allied Agriculture

0.005

0.000

0.004

0.000

0.002

0.000

0.000

0.000

0.002

0.004

Food Products

0.000

0.015

0.009

0.014

0.000

0.001

0.000

0.001

0.000

0.006

Beverage and Tobacco

0.000

0.009

0.000

0.008

0.000

0.000

0.000

0.001

0.000

0.000

Textiles

0.007

0.008

0.004

0.001

0.004

0.001

0.003

0.002

0.005

0.003

Wooden Furniture
& Products

0.002

0.003

0.005

0.003

0.000

0.003

0.002

0.007

0.002

0.009

Chemical

0.169

0.274

0.203

0.310

0.172

0.408

0.447

0.421

0.327

0.309

Machine tools

0.002

0.000

0.001

0.000

0.003

0.000

0.001

0.000

0.001

0.000

Other machinery

0.006

0.006

0.011

0.006

0.004

0.004

0.007

0.009

0.003

0.006

Total inputs

0.594

0.705

0.639

0.650

0.783

0.757

0.749

0.630

0.659

0.699

 

 

 

Table 8 (b): Chemical industries

Inputs

Drugs and
medicines

Soaps, cosmetics
& glycerin

Synthetic
fibers, resin

Other chemicals

 

 

 

 

 

 

 

 

Allied Agriculture

0.013

0.001

0.011

0.001

0.006

0.003

0.006

0.016

Food Products

0.006

0.007

0.001

0.007

0.000

0.000

0.004

0.019

Beverage and Tobacco

0.000

0.000

0.000

0.001

0.000

0.001

0.000

0.000

Textiles

0.011

0.005

0.011

0.006

0.002

0.001

0.031

0.007

Wooden Furniture & Products

0.003

0.010

0.002

0.021

0.006

0.001

0.007

0.011

Chemical

0.305

0.385

0.329

0.227

0.299

0.415

0.167

0.174

Machine tools

0.000

0.000

0.000

0.000

0.002

0.000

0.000

0.000

Other machinery

0.005

0.004

0.010

0.015

0.007

0.007

0.002

0.005

Total inputs

0.665

0.602

0.688

0.654

0.643

0.657

0.791

0.703

 

In structural clay products, cement, other non-metallic mineral products, iron & steel casting, forging and alloys there has not been any perceptible increase in the use of total inputs in unit value of their products (Table 9).  Use of machine tool either declined or remained unchanged in these groups.  Even the use of other machinery as inputs declined with the exception of structural clay products where it increased. Energy intensity increased in all these cases except structural clay products.

 

 

Table 9 (a): Non-metallic and metallic mineral products

 

Inputs

Structural
clay products

Cement

Other non-metallic
mineral prods.

Iron, steel
and  ferro alloys

Iron and steel
casting & forging

 

 

 

 

 

 

 

 

 

 

Allied Agriculture

0.009

0.000

0.001

0.000

0.002

0.000

0.000

0.000

0.001

0.000

Beverage and Tobacco

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Textiles

0.001

0.002

0.040

0.003

0.006

0.003

0.001

0.000

0.006

0.000

Wooden Furniture & Products

0.002

0.005

0.002

0.009

0.007

0.005

0.001

0.000

0.004

0.001

Leather footwear & Products

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Chemical

0.051

0.042

0.044

0.043

0.053

0.044

0.051

0.020

0.041

0.004

Machine tools

0.002

0.000

0.001

0.001

0.001

0.000

0.001

0.000

0.001

0.001

Other machinery

0.007

0.009

0.004

0.000

0.006

0.001

0.003

0.000

0.009

0.007

Total inputs

0.636

0.645

0.72

0.694

0.602

0.604

0.75

0.693

0.790

0.732

 

 

 

Table 9 (b): Non-metallic and metallic mineral products

Inputs

Iron and steel
foundries

Non-ferrous
basic metals

Hand tools,
hardware

Miscellaneous
metal products

 

 

 

 

 

 

 

 

Allied Agriculture

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Beverage and Tobacco

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Textiles

0.001

0.000

0.006

0.000

0.008

0.001

0.004

0.004

Wooden Furniture & Products

0.001

0.000

0.002

0.001

0.006

0.004

0.001

0.004

Leather footwear & Products

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Chemical

0.007

0.009

0.049

0.046

0.022

0.013

0.021

0.029

Machine tools

0.000

0.002

0.001

0.000

0.004

0.014

0.000

0.005

Other machinery

0.012

0.015

0.011

0.008

0.006

0.051

0.013

0.037

Total inputs

0.824

0.737

0.709

0.749

0.564

0.570

0.681

0.642

 

                                                                                                      

                                                                                 

In large number of above groups the general trend has been towards reduced input values for machine tool and other industrial machinery while the feedstock, most often from allied industrial sectors and rarely from agriculture, either raised or failed to decline in general their respective value inputs. Quite likely this decline in use of machine reflects stagnation in technical changes. Increase in value of industrial feedstock is also possible from a rise in relative price, consequent to technical stagnation and capacity underutilization in respective feedstock industries. The broad picture might therefore indicate stagnation in industrial technological changes.    

It may be seen in Table 10 that the use of machine tools increased substantially in the unit values of the outputs of tractor and agricultural machinery, both types of industrial machinery, machine tools, other non-electrical machinery, electrical industrial machinery, electrical wires, batteries, electrical appliances, communication equipments, other electrical equipments and electronic equipments.  The use of other machinery increased in the production of tractor & agricultural machinery, industrial machinery, machine tools, electrical wires, batteries, electrical appliances, and communication equipments.  For the other industries mentioned above its use declined.  With the exception of electrical appliances, all the other industries reduced the use of chemical products in the unit value of output. Further, energy intensity declined in all the cases except batteries and electrical appliances where it increased.

 

 

Table 10 (a): Machinery industries

Inputs

Tractors and
agri. implements

Industrial
machinery(F & T)

Industrial
machinery
(others)

Machine
tools

Other
non-electrical
machinery

Electrical
industrial
Machinery

 

 

 

 

 

 

 

 

 

 

 

 

Textiles

0.005

0.000

0.007

0.003

0.006

0.000

0.007

0.002

0.003

0.003

0.001

0.001

Wooden Furniture
& Products

0.003

0.004

0.009

0.008

0.005

0.007

0.013

0.005

0.007

0.006

0.005

0.002

Machine tools

0.000

0.057

0.000

0.039

0.000

0.043

0.016

0.045

0.000

0.013

0.000

0.016

Other machinery

0.047

0.111

0.329

0.107

0.129

0.144

0.030

0.093

0.128

0.120

0.104

0.198

Transport equipment

0.000

0.012

0.000

0.000

0.000

0.006

0.000

0.001

0.000

0.001

0.000

0.000

Total inputs

0.683

0.716

0.688

0.712

0.743

0.698

0.627

0.642

0.620

0.682

0.659

0.785

 

 

 

 

Table 10 (b): Machinery industries

Inputs

Electrical
wires & cables

Batteries

Electrical
appliances

Communication
equipments

Other electrical
Machinery

Electronic
equipments (incl.TV)

 

 

 

 

 

 

 

 

 

 

 

 

Textiles

0.003

0.011

0.008

0.002

0.004

0.003

0.003

0.002

0.015

0.003

0.010

0.002

Wooden Furniture
& Products

0.012

0.003

0.026

0.003

0.008

0.007

0.010

0.005

0.050

0.006

0.011

0.001

Machine tools

0.000

0.011

0.000

0.008

0.000

0.004

0.000

0.003

0.000

0.031

0.000

0.001

Other machinery

0.024

0.017

0.023

0.058

0.043

0.067

0.136

0.359

0.106

0.099

0.151

0.388

Transport
equipment

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.001

0.000

0.000

Total inputs

0.706

0.762

0.663

0.768

0.634

0.774

0.610

0.836

0.653

0.684

0.675

0.785

 

 

 

The uses of machine tools and other machines are substantially increased in the unit value of the output of ships and boats, rail equipment, motor vehicles, motorcycles and bicycles.  The use of wooden furniture on the other hand declined in all these cases excepting rail equipment. As it appears, these two broad groups have generated technological changes as reflected in their upward consumption of generative capacities embedded in machine tools and other industrial machinery.

 

 

Table 11 (a): Transport equipment industries

Inputs

Ships
and boats

Rail
equipment

Motor
vehicles

Motor cycles
and scooters

Bicycles,
cycle-rickshaw

Other transport
equipment

 

 

 

 

 

 

 

 

 

 

 

 

Textiles

0.004

0.000

0.001

0.003

0.001

0.002

0.002

0.001

0.003

0.002

0.008

0.001

Wooden Furniture
& Products

0.014

0.000

0.013

0.015

0.004

0.001

0.003

0.001

0.007

0.003

0.011

0.002

Leather footwear
& Products

0.000

0.000

0.000

0.000

0.000

0.001

0.000

0.000

0.001

0.004

0.000

0.000

Chemical

0.100

0.003

0.038

0.096

0.032

0.017

0.032

0.031

0.036

0.008

0.019

0.013

Machine tools

0.000

0.007

0.000

0.021

0.000

0.011

0.000

0.007

0.001

0.003

0.000

0.031

Other machinery

0.008

0.047

0.024

0.052

0.046

0.121

0.032

0.073

0.018

0.071

0.015

0.073

Transport equipment

0.078

0.360

0.120

0.028

0.116

0.112

0.202

0.190

0.228

0.151

0.164

0.000

Total inputs

0.737

0.699

0.536

0.650

0.673

0.725

0.661

0.700

0.698

0.737

0.570

0.554

 

 

 

Table 11 (b): Equipment & Services industries

Intensity

Inputs

Watches
and clocks

Construction

Electricity

Water
supply

Railway transport
services

 

 

 

 

 

 

 

 

 

 

Allied Agriculture

0.000

0.000

0.005

0.005

0.000

0.000

0.000

0.000

0.000

0.000

Food Products

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Textiles

0.007

0.001

0.001

0.001

0.000

0.000

0.000

0.000

0.000

0.000

Wooden Furniture
& Products

0.002

0.002

0.028

0.013

0.000

0.000

0.000

0.000

0.000

0.000

Leather footwear
& Products

0.000

0.019

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Chemical

0.020

0.009

0.041

0.036

0.003

0.002

0.005

0.003

0.003

0.000

Machine tools

0.001

0.001

0.000

0.000

0.000

0.000

 

0.000

0.000

0.000

Other machinery

0.010

0.060

0.000

0.001

0.026

0.044

0.003

0.003

0.005

0.004

Transport equipment

0.000

0.000

0.000

0.000

0.001

0.001

0.001

0.001

0.129

0.173

Total inputs

0.605

0.509

0.587

0.592

0.642

0.741

0.294

0.368

0.450

0.552

 

 

 

Changes in Energy in Selected Industries: Evidence from Input-Output Tables 1993-94 and 2003-04

From the input-output tables one may obtain detailed information about the consumption of different energy inputs (in money terns) per unit value of output of each sector. Since outputs and inputs are both in money terms, it is not possible to measure the relationships between the inputs and outputs in quantity terms. One can however say about the value of the energy inputs for each unit value of the output of a commodity/industry/sector. Information about the energy sources that are available in the input-output tables includes coal and lignite, crude petroleum and natural gas, petroleum products and electricity. Some important sources like forest products or biomass are left out.

 

Table 12: Food Crops

Energy Inputs

Paddy

Wheat

Maize

Pulses

 

 

 

 

 

 

 

 

Coal and lignite

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Crude petroleum, natural gas

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Petroleum products

0.008

0.024

0.009

0.018

0.007

0.029

0.007

0.019

Electricity

0.018

0.029

0.055

0.034

0.021

0.011

0.011

0.007

Total energy

0.026

0.053

0.064

0.052

0.028

0.039

0.018

0.026

 

 

Table 13: Non-food crops

Energy Inputs

Sugarcane

Jute

Cotton

Tobacco

 

 

 

 

 

 

 

 

Coal and lignite

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Crude petroleum, natural gas

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Petroleum products

0.002

0.011

0.000

0.016

0.005

0.016

0.004

0.007

Electricity

0.012

0.015

0.000

0.000

0.016

0.011

0.007

0.006

Total energy

0.014

0.025

0.000

0.016

0.021

0.027

0.010

0.012

 

 

Table 14: Allied agricultural activities

                           

Energy Inputs

Milk and milk
products

Other livestock
products

Forestry and
logging

Fishing

 

 

 

 

 

 

 

 

Coal and lignite

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Crude petroleum, natural gas

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Petroleum products

0.000

0.000

0.000

0.000

0.008

0.009

0.019

0.039

Electricity

0.000

0.000

0.000

0.000

0.001

0.001

0.001

0.000

Total energy

0.000

0.000

0.000

0.000

0.008

0.010

0.020

0.039

 

 

 

Table 15: Oil, beverage and tobacco products

                           

Energy Inputs

Sugar

Hydrogenated oil
(vanaspati)

Edible oils other
than vanaspati

Beverages

Tobacco
products

 

 

 

 

 

 

 

 

 

 

Coal and lignite

0.002

0.001

0.008

0.001

0.003

0.001

0.011

0.001

0.001

0.001

Crude petroleum, natural gas

0.002

0.000

0.000

0.000

0.000

0.000

0.002

0.000

0.000

0.000

Petroleum products

0.004

0.010

0.002

0.006

0.003

0.006

0.004

0.015

0.004

0.005

Electricity

0.009

0.007

0.048

0.009

0.020

0.008

0.014

0.021

0.008

0.005

Total energy

0.017

0.018

0.058

0.017

0.026

0.015

0.032

0.037

0.013

0.011

 

 

 

 

Among the food crops energy inputs per unit value of output increased substantially, with the exception of wheat where it declined (Table 12). This decline is noted with regard to electricity consumption. In maize also electricity consumption per unit output declined. However, consumption of petroleum products increased in all the cases. Similarly, among the non-food crops petroleum products consumption increased per unit of output for all the crops (Table 13). Electricity consumption also increased excepting for cotton and tobacco. However, overall energy intensity of output increased for all the crops. Other livestock products, forestry and fishing among allied agricultural activities, substantially raised the consumption of petroleum products per unit value of their products (Table 14). Petroleum products are the almost exclusive source of their energy. Vanaspati and edible oil substantially reduced energy intensity whereas it is moderately increased for beverage (Table 15). However in all the industries, sugar, vanaspati, edible oil, beverage and tobacco, the use of petroleum products per unit value of output increased and that of coal and lignite and crude petroleum and natural gas declined.

 

 

Table 16 (a): Textile industries

Energy Inputs

Khadi, cotton
textiles (handlooms)

Cotton
textiles

Woollen
textiles

Silk
textiles

Art silk, synthetic
fibre textiles

 

 

 

 

 

 

 

 

 

 

Coal and lignite

0.000

0.001

0.004

0.001

0.008

0.002

0.002

0.001

0.005

0.007

Crude petroleum,
natural gas

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.001

0.000

Petroleum products

0.004

0.015

0.004

0.019

0.007

0.017

0.005

0.022

0.002

0.030

Electricity

0.034

0.049

0.048

0.063

0.029

0.037

0.017

0.026

0.045

0.042

Total energy

0.038

0.065

0.056

0.084

0.044

0.055

0.024

0.049

0.053

0.079

 

 

Table 16 (b): Textile industries

Energy Inputs

Jute, hemp,
mesta textiles

Carpet weaving

Readymade
garments

Miscellaneous
textile products

 

 

 

 

 

 

 

 

Coal and lignite

0.007

0.005

0.005

0.001

0.000

0.000

0.002

0.000

Crude petroleum, natural gas

0.000

0.000

0.000

0.000

0.000

0.000

0.002

0.009

Petroleum products

0.005

0.004

0.004

0.007

0.003

0.007

0.002

0.006

Electricity

0.059

0.066

0.026

0.011

0.007

0.008

0.018

0.013

Total energy

0.071

0.076

0.036

0.018

0.010

0.015

0.024

0.028

 

 

Table 17: Furniture, wood, paper, printing and leather industries

Energy Inputs

Furniture and
fixtures-
wooden

Wood and
wood products

Paper, paper
prods.&
newsprint

Printing and
publishing

Leather
footwear

Leather and
leather
products

 

 

 

 

 

 

 

 

 

 

 

 

Coal and lignite

0.000

0.001

0.002

0.005

0.055

0.021

0.000

0.000

0.000

0.000

0.001

0.000

Crude petroleum,
natural gas

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

0.000

Petroleum products

0.004

0.004

0.004

0.006

0.004

0.025

0.004

0.004

0.004

0.007

0.003

0.007

Electricity

0.009

0.012

0.015

0.018

0.063

0.049

0.020

0.017

0.018

0.013

0.010

0.013

Total energy

0.014

0.017

0.022

0.029

0.122

0.094

0.024

0.021

0.023

0.020

0.015

0.021

 

 

 

Among the eleven categories of textile industries, namely Khadi and handlooms, cotton textiles, woolen textiles, silk textiles, art silk, synthetic fiber textiles, jute, hemp, mesta textiles, carpet weaving, readymade garments and miscellaneous textile products only carpet weaving has reduced energy intensity per unit value of output and for the rest it has increased (Table 16). Barring few exceptions, use of petroleum products and electricity per unit value of output generally increased and that of coal and lignite declined. Table 17 presents data on energy consumption in furniture, wood, paper, printing and leather industries. It is noted that in wooden furniture and wood products and leather and leather products energy inputs in the unit value of their outputs increased whereas it declined in the case of paper and paper products, printing and publishing and leather footwear owing to decline in electricity consumption. Petroleum product consumption per unit value of output remained unchanged in a few cases and increased in the rest of the industries. Rubber, petroleum and coal tar products were able to reduce energy consumption and for plastic it remained unchanged (Table 18). In all these industries petroleum product consumption increased.

 

 

Table 18: Rubber, plastic petroleum and coal products

Energy Inputs

Rubber  products

Plastic products

Petroleum products

Coal tar products

 

 

 

 

 

 

 

 

Coal and lignite

0.007

0.002

0.001

0.000

0.000

0.000

0.252

0.283

Crude petroleum,
natural gas

0.006

0.000

0.007

0.000

0.714

0.622

0.176

0.028

Petroleum products

0.004

0.018

0.001

0.012

0.009

0.037

0.006

0.018

Electricity

0.036

0.030

0.039

0.037

0.005

0.014

0.018

0.026

Total energy

0.052

0.049

0.048

0.048

0.729

0.673

0.452

0.355

 

 

 

Table 19 (a): Chemical industries

Energy Inputs

Inorganic heavy
chemicals

Organic heavy
chemicals

Fertilizers

Pesticides

Paints, varnishes
and lacquers

 

 

 

 

 

 

 

 

 

 

Coal and lignite

0.043

0.037

0.018

0.009

0.015

0.011

0.002

0.000

0.008

0.000

Crude petroleum, natural gas

0.018

0.001

0.027

0.001

0.117

0.079

0.001

0.000

0.015

0.009

Petroleum products

0.007

0.018

0.012

0.033

0.003

0.162

0.010

0.016

0.008

0.023

Electricity

0.055

0.071

0.086

0.067

0.034

0.022

0.058

0.023

0.064

0.015

Total energy

0.123

0.127

0.143

0.110

0.169

0.274

0.071

0.039

0.094

0.047

 

 

 

Table 19 (b): Chemical industries

Energy Inputs

Drugs and medicines

Soaps, cosmetics  & glycerin

Synthetic fibers, resin

Other chemicals

 

 

 

 

 

 

 

 

Coal and lignite

0.002

0.001

0.003

0.000

0.015

0.000

0.017

0.002

Crude petroleum,
natural gas

0.007

0.003

0.000

0.000

0.039

0.003

0.009

0.042

Petroleum products

0.004

0.010

0.007

0.012

0.004

0.044

0.004

0.031

Electricity

0.024

0.020

0.068

0.010

0.037

0.007

0.051

0.073

Total energy

0.037

0.034

0.078

0.023

0.095

0.054

0.081

0.147

 

 

 

In the chemical industry groups there is a general tendency to substitute coal and lignite and crude petroleum and natural gas by petroleum products as indicated by rapid increase of the latter in all the industries and decline of the former in most of the cases (Table 19). Inorganic heavy chemicals and other chemicals raised electricity consumption, whereas organic heavy chemicals, fertilizers, pesticide, paints, varnishes and lacquers, drugs and medicines, soaps, cosmetics & glycerin, synthetic fibers, resin had reduced it. It is displayed in Table 20 that among the non-metallic and metallic mineral products groups, namely, structural clay products, cement, other non-metallic mineral prods., Iron, steel and  ferrous alloys, Iron and steel casting & forging, Iron and steel foundries, Non-ferrous basic metals, Hand tools, hardware and Miscellaneous metal products, only the last three were able to reduce energy intensity and for the rest (excepting cement) it increased. Similar pattern is found as regards electricity consumption. However, petroleum products consumption increased across the board.

 

 

 

Table 20 (a): Non-metallic and metallic mineral products

 

Energy Inputs

Structural clay
products

Cement

Other non-metallic
mineral prods.

Iron, steel
and  ferro alloys

Iron and steel
casting & forging

 

 

 

 

 

 

 

 

 

 

Coal and lignite

0.067

0.020

0.118

0.075

0.028

0.003

0.072

0.113

0.028

0.056

Crude petroleum,
natural gas

0.000

0.000

0.000

0.011

0.000

0.000

0.001

0.018

0.003

0.000

Petroleum products

0.019

0.094

0.005

0.034

0.043

0.055

0.009

0.020

0.008

0.023

Electricity

0.023

0.059

0.111

0.111

0.038

0.057

0.041

0.066

0.060

0.077

Total energy

0.109

0.173

0.234

0.233

0.108

0.116

0.123

0.217

0.099

0.156

 

 

Table 20 (b): Non-metallic and metallic mineral products

Energy Inputs

Iron and steel
foundries

Non-ferrous
basic metals

Hand tools,
hardware

Miscellaneous
metal products

 

 

 

 

 

 

 

 

Coal and lignite

0.010

0.001

0.017

0.100

0.011

0.006

0.008

0.009

Crude petroleum, natural gas

0.002

0.000

0.002

0.008

0.002

0.000

0.001

0.002

Petroleum products

0.007

0.009

0.007

0.018

0.015

0.010

0.005

0.008

Electricity

0.044

0.012

0.083

0.057

0.030

0.027

0.036

0.014

Total energy

0.064

0.022

0.109

0.183

0.059

0.042

0.051

0.033

 

 

 

Table 21 (a): Machinery industries

Energy Inputs