Answer-Since 2015, India has adopted Gross Value Added (GVA) at Basic Prices as the primary measu...

Gross Value Added GVA measures the value of goods and services produced in an area, industry, or sector, whereas Gross Domestic Product GDP represents the total market value of all final products and services produced within an economy. GDP at Market Prices is reached by adding Net Product Taxes to the GVA at Basic Prices. The relationship is GDP GVA Taxes on Products - Subsidies on Products. Note - The Ministry of Statistics and Programme Implementation MoSPI distinguishes between Production taxessubsidies independent of volume, like land revenue and Product taxessubsidies linked to volume, like GSTExcise. GVA at Basic Prices already includes Production Taxes net of subsidies.

Question

Since 2015, India has adopted Gross Value Added (GV

A at Basic Prices as the primary measure of economic activity by sector. What is the correct conceptual relationship between GDP at Market Prices and GVA at Basic Prices?

A GDP at Market Prices = GVA at Basic Prices + Product Taxes – Production Subsidies b) c)

B GDP at Market Prices = GVA at Basic Prices + Production Taxes – Product Subsidies

C GDP at Market Prices = GVA at Basic Prices + Depreciation

D GDP at Market Prices = GVA at Basic Prices – Net Factor Income from Abroad (NFIA)

E GDP at Market Prices = GVA at Factor Cost – Indirect Taxes

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