Inter-Regional Homogeneity of Consumer Behaviour in India

In the context of planned development in India, the reliability of forecast of private bill of goods which constitutes a major share of total final bill of goods (including public demand) is important, for in the planning models which seem to have been used in India the reliability of plan targets of gross output of various sectors depends largely, inter alia, on how precise the estimate of private final demand vector is. Available evidence shows that this final demand vector is built, among others, on the assumption of inter-regional homogeneity of consumer behaviour in India.