GVA at basic prices of an economy is Rs 7,000 crore and net product taxes are Rs 600 crore. What is the GDP at market prices?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs 7,600 crore
Given:
GVA at basic prices = Rs 7,000 crore
Net product taxes = Rs 600 crore
Adding net product taxes to GVA at basic prices gives GDP at market prices.
GDPMP = 7,000 + 600 = Rs 7,600 crore
NCERT (2026-27): “2.2.4 Factor Cost, Basic Prices and Market Prices … As stated above, now the CSO releases GVA at basic prices. Thus, it includes the net production taxes but not net product taxes. In order to arrive at the GDP (at market prices) we need to add net product taxes to GVA at basic prices. Thus, |