Production Method (GVA) in GDP calculation

sfg-2026
ForumIAS LATEST
    1. Prelims Test Series (PTS) for Prelims 2027 starts 11th Oct. 2026 Click Here to know more →
    2. [Pre-order] Ethics Redbook 3rd Edition: Delivery starts from 10th October onwards Click Here to Read More →
    3. 21 Sept. | Forum Residential Coaching (FRC) for UPSC preparation Click Here to know more →
    4. 21 Sept. | GS Advance Program (GSAP) for UPSC 2027 Mains starts from 10th Oct. Click Here to Read More →

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

Print Friendly and PDF
Blog
Academy
Community