GDP or GVA: Take your pick for methodology to compute growth numbers

he raging debate may boil down to what you are looking for

The gross domestic product (GDP) series introduced in 2015 has triggered many debates. It changed not only the base year from 2004-05 to 2011-12 but also the methodology to compute the numbers. The debate over the relative relevance of gross value added (GVA) and GDP as the true indicator of economic performance is not new, but it has been accentuated by the recent national account numbers released by the statistics office.

Though the GVA growth, as expected, fell to 6.5 per cent during the third quarter of the current financial year (October-December 2023) from 7.7 per cent during the second quarter (July-September), the GDP growth rate rose to a six-quarter high of 8.4 per cent during October-December, compared to 8.1 per cent in July-September.