Not all Prices are Equal: Sectoral Gaps in Indian Manufacturing Pricing Power

This paper examines the pricing power of Indian manufacturing firms at the 2-digit level of the National Industrial Classification (NIC), using input and output price indices derived from Supply and Use Tables and wholesale price data. Pricing power, defined as a firm’s ability to raise prices without losing demand, is crucial for maintaining profitability amid economic uncertainties like trade policy shifts and rising commodity prices. Using vector autoregression (VAR) models — including static