Economic growth takes place at uneven rates across different sectors of the economy. Hence economists use models to understand different aspects of the economy. Multi-sector growth model is a growth model where more than two sector in the economy is considered, which produces several durable goods each produced in a separate sector of the economy. This kind of model is used primarily to study the allocation of resources across different economic activities.

In India, comprehensive economic planning is required to fulfill some broad social and economic objectives. Multi-sector growth models plays an important role in economic planning in India. Some of their roles are:

1. Allocation of resources :- Resources like natural, material, capital or human are limited. Multi sector growth model provides a method of rational and considered choice for securing the optimum combination of inputs.

2. Socio-economic Development :- Multi-sector growth helps in identifying deficiencies in the economy and the social structure which demands the largest attention. By achieving the goal of economic development, a country can the problems of general poverty, unemployment and backwardness.

3. Quantitative dimension :- For any government, quantifying goals is a necessity. For quantification of goals, it is essential that resource availability be expressed in numbers. It helps in mobilizing resources efficiently. Multi-sector growth model gives a quantitative dimension which will lead to higher degree of capital formation.

4. Rational Social activity :- It helps the government to look beyond individual needs and extend its vision geographically to comprehend larger areas and larger population. It also helps the public authority to evaluate the use pattern of resources in terms of social costs and social benefits in order to safeguard the interest of future generation.

5. Improvement in calculations :- Multi-sector growth model helps in giving precise statistical data which makes the inter relationship within the sectors of national economy see more clearly and also helps in tracking the effects of policies and measure more systematically.

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