"This report presents a methodology for developing input-output (IO) tables for the states of Jharkhand, Karnataka and Uttarakhand (USAID/REFORM states) for the year 2003-04 and also provides the reader with policy simulations using these tables. The IO analysis furnishes important information on inter-relationships that exist among commodity producing sectors, final users (households, government and exports), and the factors of production within an economy.

The current volume uses a hybrid method to construct state level input-output tables. Even in hybrid methods there are differences, and the more common method identifies cells that are most critical for the accuracy of output multipliers. This research carried out by the NCAER team guided by Anushree Sinha, uses a hybrid method having key sectors surveyed in the three states. The critical or key sectors of the states were first determined through use of secondary data and discussions with state level experts. As key sectors are major economic players, these have high linkages with all other sectors in an economy. "