A deep dive into India’s 2020–22 Supply and Use Tables, analyzing GDP, sectoral trends, and global benchmarking for better economic policy insights.
New Delhi (ABC Live): India’s Supply and Use Tables (SUTs) for 2020–21 and 2021–22, published by MoSPI, offer a comprehensive macroeconomic snapshot. These tables encompass 140 products and 66 industries, providing a detailed breakdown of the economy’s supply and demand. SUTs help integrate GDP estimates from production, income, and expenditure sides and reconcile data discrepancies.
Key Functions of Supply and Use Tables (SUTs)
- GDP Harmonisation: SUTs unify GDP estimates using all three approaches.
- Discrepancy Adjustment: They ensure production and expenditure estimates are aligned.
- Detailed Sectoral View: Enables granular insights into sector-wise value addition.
SUTs consist of two primary matrices:
- Supply Table: Captures domestic production and imports.
- Use Table: Captures intermediate and final uses, including consumption, investment, and exports.
For more information on international best practices, refer to the OECD Handbook on Extended Supply and Use Tables.
Sectoral Analysis: Value Addition Efficiency
Industries with High GVA-to-GVO Ratios (0.96–0.80)
- Ownership of Dwellings
- Fishing & Aquaculture
- Forestry and Logging
- Agriculture
- Education & Research (2020–21)
- Crude Petroleum (2021–22)
Industries with Low GVA-to-GVO Ratios (0.15–0.09)
- Food Processing and Dairy
- Communication Equipment
- Petroleum Products
Insight: High ratio sectors are more value-efficient. Low ratio industries are input-heavy or import-reliant.
Intermediate Consumption and PFCE Trends
| Indicator | 2020–21 | 2021–22 |
|---|---|---|
| Construction Share | 13.82% | 14.03% |
| Goods in Intermediate Use | 70% | 72% |
| Services in Intermediate Use | 30% | 28% |
| Goods in PFCE | 62% | 59% |
| Services in PFCE | 38% | 41% |
Trend: Consumption is shifting toward services, indicating structural transformation.
GDP Discrepancy Adjustments in SUTs
| Year | GDP Discrepancy (? Cr) | PFCE Cut | Inventory Cut | Import Cut |
| 2020–21 | –2,46,154 | –3,05,628 | –18,897 | –78,374 |
| 2021–22 | –2,16,579 | –3,55,540 | –1,884 | –1,37,081 |
SUTs help balance these figures, but they may underrepresent private consumption in official data.
Post-Pandemic Economic Supply Trends
| Year | Total Supply at Purchaser Prices (? L Cr) | Growth (%) |
| 2020–21 | 407.52 | — |
| 2021–22 | 523.08 | 28.4% |
The economy rebounded sharply after the COVID-19 shock. Inflation and imports played major roles.
India vs OECD: Supply and Use Table Comparison
+-------------------------------+----------------------------+-------------------------+
| Metric | India | OECD Average |
+-------------------------------+----------------------------+-------------------------+
| Update Frequency | Benchmark (2–3 years lag) | Annual |
| Product Disaggregation | 140 Products | >200 Products |
| Enterprise Type Disaggregation| No | Yes (SME vs MNE) |
| Microdata Integration | Partial | Full |
| Discrepancy Transparency | Moderate | High |
| Dashboard Availability | No | Yes |
+-------------------------------+----------------------------+-------------------------+India needs more frequent updates, deeper enterprise disaggregation, and open dashboards to match global benchmarks.
Recommendations for SUT Improvement
| Focus Area | Recommendation |
| Update Frequency | Annual SUTs using GST and e-invoicing data |
| Sector Detailing | Add SME/MNE/exporter status for products and industries |
| Transparency | Disclose rationale behind expenditure-side adjustments |
| Visualization | Launch SUT-based interactive dashboards |
| Global Alignment | Follow OECD’s Extended SUT & Input-Output Standards |
Conclusion
MoSPI’s release of India’s SUTs for 2020–21 and 2021–22 represents an essential step in advancing the country’s macroeconomic data ecosystem. For better policy relevance, India must now focus on annual updates, real-time data integration, and enterprise-level disaggregation. These improvements will enhance economic planning, investor confidence, and India’s position in global value chains.
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