Correct option is C
The correct answer is (C) indirect taxes
Explanation:
● Gross Value Added (GVA) is derived from Gross Domestic Product (GDP) by adjusting for taxes and subsidies on production.
● The relationship is: GVA = GDP + subsidies on production − indirect taxes.
● Therefore, while estimating GVA from GDP, indirect taxes are subtracted.
● Gross Value Added (GVA) is derived from Gross Domestic Product (GDP) by adjusting for taxes and subsidies on production.
● The relationship is: GVA = GDP + subsidies on production − indirect taxes.
● Therefore, while estimating GVA from GDP, indirect taxes are subtracted.
Information Booster:
● GVA measures the actual value of goods and services produced in the economy.
● It reflects the contribution of different sectors like agriculture, industry, and services.
● GDP includes product taxes, whereas GVA excludes them.
● GVA is considered a better indicator of economic performance at the sectoral level.
● India officially uses GVA to analyse sector-wise growth.
● GVA measures the actual value of goods and services produced in the economy.
● It reflects the contribution of different sectors like agriculture, industry, and services.
● GDP includes product taxes, whereas GVA excludes them.
● GVA is considered a better indicator of economic performance at the sectoral level.
● India officially uses GVA to analyse sector-wise growth.
Additional Knowledge:
● Indirect taxes include GST, excise duty, and customs duty.
● Subsidies reduce the cost of production and are added while calculating GVA.
● Depreciation is related to Net Domestic Product (NDP), not GVA.
● Indirect taxes include GST, excise duty, and customs duty.
● Subsidies reduce the cost of production and are added while calculating GVA.
● Depreciation is related to Net Domestic Product (NDP), not GVA.
