{"id":371061,"date":"2026-09-04T17:10:21","date_gmt":"2026-09-04T11:40:21","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=371061"},"modified":"2026-09-04T17:10:21","modified_gmt":"2026-09-04T11:40:21","slug":"negative-gva-deflator-for-manufacturing-sector","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/negative-gva-deflator-for-manufacturing-sector\/","title":{"rendered":"Negative GVA Deflator for Manufacturing Sector"},"content":{"rendered":"<div class=\"content-box-green\">\n<p><strong>News:<\/strong> MoSPI clarified the -1.5% manufacturing GVA deflator in Q1 2026-27 and explained how double deflation produced it.<\/p>\n<\/div>\n<h2 class=\"red-h2-box\">About Negative GVA Deflator for Manufacturing Sector<\/h2>\n<ul>\n<li><strong>Gross Value Added (GVA): <\/strong>It measures the <strong>value added by an industry to the economy<\/strong>.\n<ul>\n<li>It is broadly <strong>calculated by subtracting the value of goods and services used as inputs from the value of production.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Nominal GVA:<\/strong> It measures the <strong>value added at current prices<\/strong>, meaning it <strong>includes the effect of changes in prices<\/strong>.<\/li>\n<li><strong>Real GVA:<\/strong> It shows the <strong>change in the value added by a sector after removing the effect of price changes<\/strong>.\n<ul>\n<li>It is <strong>calculated as real output minus real intermediate consumption.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Deflation:<\/strong> It means <strong>removing the effect of price changes<\/strong> from a <strong>current-price value to find its real value at constant prices.<\/strong><\/li>\n<li><strong>Double deflation:<\/strong> It is an accounting technique <strong>used to calculate real GVA by deflating gross output<\/strong> and <strong>intermediate consumption separately using individual price indices.<\/strong><\/li>\n<li><strong>Negative GVA deflator:<\/strong> It means that <strong>nominal GVA grows slower than real GVA<\/strong>.\n<ul>\n<li>It <strong>does not mean that the prices of goods have fallen. <\/strong><\/li>\n<li>It can <strong>occur when input prices rise faster than output prices.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 class=\"yellow-h2-box\">Recent Finding in India<\/h2>\n<ul>\n<li>In <strong>Q1 2026-27,<\/strong> <strong>manufacturing nominal GVA grew by 7.7%,<\/strong> while <strong>real GVA grew by 9.2%,<\/strong> as <strong>input prices rose faster than output prices.<\/strong><\/li>\n<li>This <strong>resulted in a -1.5% implicit GVA deflator<\/strong> for the manufacturing sector.<\/li>\n<li>Thus, <strong>the -1.5% figure reflects the relative movement<\/strong> of <strong>output and input prices<\/strong>, <strong>rather than a fall in manufacturing output prices.<\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: MoSPI clarified the -1.5% manufacturing GVA deflator in Q1 2026-27 and explained how double deflation produced it. About Negative GVA Deflator for Manufacturing Sector Gross Value Added (GVA): It measures the value added by an industry to the economy. It is broadly calculated by subtracting the value of goods and services used as inputs&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/negative-gva-deflator-for-manufacturing-sector\/\">Continue reading <span class=\"screen-reader-text\">Negative GVA Deflator for Manufacturing Sector<\/span><\/a><\/p>\n","protected":false},"author":10401,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-371061","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/371061","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10401"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=371061"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/371061\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=371061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=371061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=371061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}