According to the NCERT Glossary, Gross Value Added (GVA) of a country is equal to:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → GDP plus subsidies minus indirect taxes
Gross Value Added is GDP adjusted for subsidies and taxes. Subsidies are added and indirect taxes are taken away: GVA = GDP + Subsidies − indirect taxes.
Option (1) has the signs the wrong way round. GDP minus depreciation gives net domestic product, and GDP plus net factor income from abroad gives gross national product.
NCERT (2026-27): Glossary: “Gross Value Added – The sum of a country’s GDP and net of subsidies and taxes in the economy (GVA=GDP+Subsidies–indirect taxes).” |