Today the Reserve Bank of India placed on its website a Working Paper titled “Towards Atma Nirbhar Bharat: An Exploration of Linkages and Leakages” under the Reserve Bank of India Working Paper Series.* The Paper is authored by Saurabh Sharma, Ipsita Padhi and Deba Prasad Rath.

Several rounds of fiscal stimuli have been announced under the umbrella scheme of Atma Nirbhar Bharat mission in response to the COVID crisis. In this context, it is important that the policy interventions are aligned with the production structure of the economy so as to reap maximum benefits. The paper uses input-output analysis to identify the major sectors of the economy based on the sectoral multipliers. It also investigates into ‘leakages’, i.e., the change in intermediate imports associated with a unit change in domestic production. The interaction between linkages and leakages is analysed, which reveals two distinct patterns – in the case of services, higher imports are associated with higher domestic linkages, while the opposite holds for industry, i.e., higher intermediate imports are associated with lower domestic linkages. The paper also identifies the sectors for export promotion and the sectors where domestic capabilities need to be developed for supply chain resilience.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2022-2023/492

* The Reserve Bank of India (RBI) introduced the RBI Working Papers series in March 2011. These papers present research in progress of the staff members of the RBI and at times also those of external co-authors, when the research is jointly undertaken. They are disseminated to elicit comments and further debate. The views expressed in these papers are those of the authors and not necessarily those of the institution(s) to which they belong. Comments and observations may please be forwarded to the authors. Citation and use of such papers should take into account its provisional character.