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Edited by
Kakali Mukhopadhyay
Economy-Wide
Assessment of Regional
Policies in India
Applications of E3-India
Model
Economy-Wide Assessment of Regional Policies
in India
Kakali Mukhopadhyay
Editor
Economy-Wide
Assessment
of Regional Policies
in India
Applications of E3-India Model
Editor
Kakali Mukhopadhyay
Department of Agricultural Economics
McGill University
Montréal, QC, Canada
Gokhale Institute of Politics
and Economics
Pune, India
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer
Nature Switzerland AG 2021
This work is subject to copyright. All rights are solely and exclusively licensed by the
Publisher, whether the whole or part of the material is concerned, specifically the rights
of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on
microfilms or in any other physical way, and transmission or information storage and
retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology
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The use of general descriptive names, registered names, trademarks, service marks, etc.
in this publication does not imply, even in the absence of a specific statement, that such
names are exempt from the relevant protective laws and regulations and therefore free for
general use.
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tion in this book are believed to be true and accurate at the date of publication. Neither
the publisher nor the authors or the editors give a warranty, expressed or implied, with
respect to the material contained herein or for any errors or omissions that may have been
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Foreword
v
vi FOREWORD
The results in this book are of interest to researchers and policy makers
alike. Interested researchers may use the model to carry out their own
analyses, building on the examples in this book. The combination of this
book and the E3-India model provide a solid platform for developing a
low-carbon, sustainable pathway to future prosperity in India.
Terry Barker
Honorary Professor of Environmental
Science, University of East Anglia
Norwich, UK
Senior Departmental Fellow, Department
of Land Economy, University of Cambridge
Cambridge, UK
Preface
In 2015, the NITI Aayog released India’s first-ever roadmap for renew-
able electricity for India that comprehensively described the barriers faced
by renewables and presented policy ideas to address them. During the
roadmap development process, amongst many, a couple of profound
issues were raised by policymakers and stakeholders:
ix
x PREFACE
Obviously, there are several Indian and foreign experts who conduct
this kind of analysis. Policymaking, however, yields the best outcomes
when it enables meaningful participation from policymakers and stake-
holders in addition to reviewing high-quality academic research. In 2015,
though, there were no tools available in the public domain—anywhere
in the world—that would allow Indian policymakers and stakeholders
to quantify the direct and indirect benefits and their distribution across
various politically relevant categories such as states, economic sectors,
income groups and others. In order to address this fundamental gap in
evidence-based decision-making, in 2016, as the Director of the Regula-
tory Assistance Project’s India programme, I launched the effort that has
led to the creation of E3-India.
E3-India, the primary component of the analysis presented in this
volume, provides a sophisticated yet transparent platform over which poli-
cymakers and stakeholders can test a wide range of policies in terms
of key metrics such as economic growth, employment, consumption,
income, environmental impacts and others. Not only does E3-India
support energy and environmental policy analysis—for example, the two
issues mentioned above—it also supports similar in-depth analysis of all
key sectors of the Indian economy such as agriculture, industry, socio-
economic development and others. In fact, in the middle of a global
pandemic that has set back the Indian economy significantly, E3-India
is a crucial tool for systematically evaluating policies that would not only
revive growth at the aggregate level but also across regions equitably.
Today, it is with great pleasure, I present to you this volume that
describes E3-India in detail and a diverse set of policy analyses that
were developed using E3-India model. I congratulate Professor Kakali
Mukhopadhyay for guiding the distinguished group of contributing
authors in putting together this comprehensive assessment of major poli-
cies. Each paper is a major step forward in helping Indian policymakers’
and stakeholders’ ability to better understand the trade-offs resulting from
policies impacting major sectors such as agriculture, industry, electricity,
transportation and others. I hope the readers not only find the state-of-
the-art research presented here valuable immediately in the context of the
pandemic-induced economic slowdown but also serve as a starting point
for refining these analyses and taking on new ones.
xi
xii ACKNOWLEDGMENTS
Kakali Mukhopadhyay
Professor
Gokhale Institute of Politics and Economics
Pune, India
Adjunct Professor/Senior Associate Fellow
Department of Agricultural Economics
McGill University
Montreal, Canada
Contents
1 Introduction 1
Kakali Mukhopadhyay
2 Introduction to the E3-India Model 11
Hector Pollitt
3 Data Construction and Sources: E3-India Model 33
Kakali Mukhopadhyay and Unnada Chewpreecha
4 Application of E3-India Model in Agriculture
and Food Processing Sector 49
Paul J. Thomassin and Kakali Mukhopadhyay
5 Importance of Capital Goods Sector: An Application
of E3-INDIA Model 103
Priyam Sengupta, Shraddha Shrivastava,
and Kakali Mukhopadhyay
6 Impact of Electronics System and Design
Manufacturing and IT Policy in Selected Regions 155
Unnada Chewpreecha, Vishnu S. Prabhu,
and Kakali Mukhopadhyay
7 Regional Impact of Automobile Policy in India 193
Unnada Chewpreecha, Vishnu S. Prabhu,
and Kakali Mukhopadhyay
xiii
xiv CONTENTS
Index 401
Editor and Contributors
xv
xvi EDITOR AND CONTRIBUTORS
Contributors
xix
xx ABBREVIATIONS