Gross Value Added
In one line: Gross Value Added is the value of output minus the value of intermediate consumption, the contribution each producer and sector makes to the economy.
How it works
A mill that sells cloth for ₹100 after buying yarn and power worth ₹70 adds ₹30 of value. Adding such contributions across farms, factories and services gives GVA at basic prices. GDP equals GVA plus taxes on products minus subsidies on products. GVA is the better guide to what is happening sector by sector, because it is not moved by changes in product taxes.
Why it is in the news
In April to June 2026 real GVA grew 8.2% and nominal GVA 11.5%. How real GVA is calculated changed in the new series: for manufacturing, output and inputs are now deflated separately.
Where to go next
- Double deflation
- GDP deflator
Gross Value Added in the news
- NSO releases first district-level estimates of the unincorporated non-farm sector 11 September 2026
How output and productivity are measured
- Producer prices and double deflation: what changed in India's new GDP series 10 September 2026
The measure of production from which real growth is calculated.
Previous-year questions on this
- 2023 · GS3 · 10 marks Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard.
- 2019 · GS1 · 15 marks What are the continued challenges for women in India against time and space?
- 2019 · GS3 · 10 marks Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments.
- 2016 · GS3 · 12.5 marks How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country?
- 2020 · Prelims Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI does not capture changes in the prices of…