What is the correct full form of GVA?

The correct answer is Gross Value Added.

Key Points

• Gross Value Added (GVA) measures the value of goods and services produced in an economy after deducting the cost of inputs and raw materials.
• It is a key indicator used to assess the contribution of a particular sector or industry to the economy.
• The formula for GVA is: GVA = GDP + Subsidies - Taxes.
• GVA is used to calculate the Gross Domestic Product (GDP) of a country, which serves as a broader measure of economic activity.
• It helps policymakers and analysts understand sectoral growth and productivity trends in the economy.

Additional Information

• Difference between GVA and GDP:
  • GVA focuses on sectoral contributions, while GDP includes taxes and subsidies on products.
  • GDP = GVA + Taxes - Subsidies.
• Importance of GVA:
  • It highlights the economic performance of specific sectors such as agriculture, manufacturing, and services.
  • Helps in identifying growth engines and lagging areas in the economy.
• Usage in National Accounts:
  • GVA is a component of national accounts and is widely used in economic analysis.
  • It provides insights into the health of various industries and their role in overall economic growth.
• International Comparisons:
  • GVA is used globally to compare the performance of different sectors across countries.
  • It aligns with the System of National Accounts (SNA) standards recommended by international bodies like the United Nations.