Sunday, July 26

CIREM:
Collaborative on Indian Regional Economic Modelling

Global macroeconomic models typically treat India as a single economic entity, masking the immense diversity of its 36 States and Union Territories. To address this analytical gap, CSEP is developing a pioneering Global-National-Regional Computable General Equilibrium (CGE) framework to quantify how policies differentially affect states. As the only Indian institutional member of the Global Trade Analysis Project (GTAP) Consortium, CSEP is uniquely positioned to integrate granular state-level data into the sophisticated GTAP multi-country CGE model.

CIREM will empower policymakers to make evidence-based decisions, allowing them to quantitatively assess how global trade shocks, national climate and net-zero targets, and local industrial strategies differentially impact states and domestic value chains. This modelling framework will provide insights into how external shocks affect our states and how state leaders can respond to protect vulnerable communities. Additionally, the model will help states set their own development trajectories, accounting for their regional specifics, to ensure that local development and climate pathways align with India's national ambitions.

Ultimately, CIREM is designed to democratise state-level economic and climate data and analysis, forming a community-driven ecosystem of regional policymakers and researchers from across India to use empirical tools to answer important policy questions. By bridging global institutional networks with localised expertise, CIREM facilitates the exchange of technical knowledge and identifies critical regional research priorities.

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