Macroeconomic model of the indian economy

Research on modelling of Indian economy made a steady progress over the last two decades. A number of quantitative investigations describing the short-term fluctuations in the economy appeared from time to time. Constructing an econometric model on the macro structure of a developing economy like India is a continuing process. As the economy progresses there will be changes in the structural characteristics. Further, as the data base improves, there will be scope for studying the hitherto uncovered areas and expanding the explanations of the economic behaviour to reflect the theoretical underpinnings to a greater degree. Besides, new theories and measurement techniques develop over time which enable the model builder to obtain a higher level of sophistication and achieve better precision in the results. Past work is described as providing a ladder for climbing and reaching new heights in the fields of investigation. The aim of the present study is to extend the current empirical work on the Indian models a shade further.