With reference to Gross Value Added (GVA) in India, consider the following statements:
1. The Central Statistical Organization (CSO) now provides sector-wise estimates of GVA at factor cost.
2. GVA at basic prices includes production taxes and excludes production subsidies.
3. GVA at factor cost includes no taxes and excludes no subsidies.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c ) 3 only
(d) 1, 2 and 3

Question

With reference to Gross Value Added (GVA) in India, consider the following statements:
1. The Central Statistical Organization (CSO) now provides sector-wise estimates of GVA at factor cost.
2. GVA at basic prices includes production taxes and excludes production subsidies.
3. GVA at factor cost includes no taxes and excludes no subsidies.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c ) 3 only
(d) 1, 2 and 3

ONLiNE UPSC · Accepted Answer

Statement 1 is not correct: The CSO now provides sector-wise estimates of GVA at basic prices instead of factor cost, as part of the new methodology. This change allows for a more accurate reflection of economic activity by accounting for production taxes and excluding subsidies, which was not done under the factor cost method.

 
Statement 2 is correct: GVA at basic prices includes production taxes (such as GST, excise duties) and excludes production subsidies. This provides a clearer picture of the economic value added by the production process before accounting for taxes and subsidies on products.

Statement 3 is correct: GVA at factor cost includes no taxes and excludes no subsidies. It focuses purely on the costs incurred in the production process, including factors like wages, rent, and profits, without considering the impact of taxes and subsidies.

National Income Accounting

Gross Value Added (GVA)

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M Question 1	⏱ 0
With reference to Gross Value Added (GVA) in India, consider the following statements: 1. The Central Statistical Organization (CSO) now provides sector-wise estimates of GVA at factor cost. 2. GVA at basic prices includes production taxes and excludes production subsidies. 3. GVA at factor cost includes no taxes and excludes no subsidies. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 and 3 only (c ) 3 only (d) 1, 2 and 3