GVA at market prices
Topic: National Income Accounting: GDP, GVA and Welfare · NCERT: Class 12, Ch 2 "National Income Accounting"
Meaning
GVA at market prices is the total value added in the economy, measured at the prices buyers actually pay. It is the same as GDP at market prices, which India now simply calls "GDP". To get it, start from GVA at basic prices and add net product taxes. Net product taxes are taxes charged per unit of a good or service, such as GST, excise and customs, minus product subsidies.
GVA at market prices = GVA at basic prices + net product taxes = GDP (at market prices)
Example
In India in 2024-25 (Provisional Estimates, constant 2011-12 prices), GVA at basic prices was about ₹171.87 lakh crore. Net product taxes were about ₹16.10 lakh crore. Adding the two gives GVA at market prices, or GDP, of about ₹187.97 lakh crore.
Don't confuse with
- GVA at basic prices: this leaves out net product taxes. Since 2015, India reports its sector-wise figures in this measure. The gap between the two measures is net product taxes, so GDP growth can differ from GVA growth even when actual production has not changed.
Related concepts
- Factor cost
- Basic prices
- Market prices
- Production taxes
- Product taxes
- Net indirect taxes
- GDP at factor cost
- GVA at factor cost