GDP growth rate increases while GVA growth rate reduces:
GDP growth accelerated in the second quarter of this financial year to 7.3 per cent on the back of a stronger performance in the agriculture sector, official data released showed. Gross value added for the second quarter grew by 7.1 per cent.
While GDP growth quickened in the second quarter from the 7.1 per cent seen in the April-June quarter, GVA growth slowed from the 7.3 per cent registered in that period.
Both GDP and GVA growth were slower in the second quarter of this financial year as compared with the same period in the previous year, having registered a growth of 7.6 per cent and 7.3 per cent respectively.
What is Gross Value added?
Gross value added (GVA) is the measure of the value of goods and services produced in an area, industry or sector of an economy, in economics.
GVA + taxes on products – subsidies on products = GDP