Production Method (GVA) in GDP calculation

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This method is also called as Output Method or Value Added Method 

In this model economy is divided into different industrial sector such as agriculture, fishing, mining, construction, manufacturing, trade and commerce, transport and communication etc. Then, the net value added by each productive enterprises as well as by each industry or sector is estimated.  

Net value added by all sector or industries gives Net Domestic Product(NDP). By adding depreciation into it GDP is got

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