Gross value added (GVA) is the measure of the total value of goods and services produced in an economy( area, region or country). The amount of value-added to a product is taken into account.
This topic is relevant for IAS exam aspirants.
How do you calculate gross value added?
GVA can be defined as output produced after deducting the intermediate value of consumption.
This can also be mentioned as :
GVA= Gross Domestic Product + Subsidies on products – Taxes on products.
What is the difference between GVA and GDP?
The difference between GVA and GDP is that GVA is the value added to the product to enhance the various aspects of the product whereas GDP is the total amount of products produced in the country.
What is meant by gross capital formation?
Gross capital formation is measured by the total value of the gross fixed capital formation, along with the changes in inventories and acquisitions in a unit or sector.