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Resource centre on India's rural distress
 
 

The story behind the big GDP-GVA gap -Pragya Srivastava

-Livemint.com

Yet again, two measures of India’s economy— ‘gross value added’ and ‘gross domestic product’—have grown at widely different paces. While change in GDP significantly lagged the change in GVA in FY21, the story was opposite in FY22, says data released Tuesday. Mint explains:

What is the difference between GVA & GDP?

Gross value added (GVA) adds up the value of all goods and services produced in an economy after deducting the input costs, while gross domestic product (GDP) is a measure of the country’s national income by adding up the expenditures in the economy. The main difference is that the latter includes net taxes and removes subsidies, which is why the two metrics can differ in years of sharp taxation or subsidy changes. While GDP is the internationally-accepted measure of overall economic growth in the country, GVA provides sector-wise details of economic activity from the production side.

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Kindly click here to access the press release by MoSPI dated 31st May, 2022.