GVA growth in India FY 2017-2022 by sector
The trade, hotels, transport, and communication industries had the highest GVA growth rate of 12 percent among all other industries in India in the financial year 2023. Overall, the services sector registered the highest growth compared to the agriculture and industry sectors. Manufacturing, construction, electricity, gas, and water supply industries were expected to have a GVA growth of over 9 percent in the financial year 2024.
What is GVA?
GVA or gross value added is the value of goods and services produced by an industry, sector, manufacturer, or region in an economy and is used to calculate the GDP of a country. GDP combines all GVA values across industries, levies taxes, and subsidies. While GDP calculates an overall number of goods produced by a nation, GVA measures the value added to the product. It is the difference between gross and net production. The sectoral analysis provided by GVA helps policymakers create sector-specific policies and make decisions regarding incentives. The National Statistical Office (NSO) publishes estimates of GVA in India on a quarterly and annual basis elaborating on eight main types of commodities.
Services sector In India
India’s services sector covers a wide range of industries including trade, hotels, restaurants, IT-BPM, storage, communication, financing, insurance, real estate, business services, etc. Numerous government projects like Smart Cities, Clean Cities, and Digital India are strengthening the growth of the services sector. The sector also attracts significant foreign direct investment and contributes massively to exports although agriculture accounts for the majority of the employed population.
