Question

Calculate Gross Value Added at market price from the following data:
(Lakh Rs.)
(A) Value of Output: Primary 800; Secondary 700; Tertiary 500.
(B) Intermediate Inputs purchased by: Primary 500; Secondary 300; Tertiary 200.

Hint:

GVA = Output $-$ Intermediate Consumption; sum across sectors for total.

Answer 1

Concept: Gross Value Added at market price (GVA$_{mp}$) for a sector is Value of Output $-$ Intermediate Consumption. Economy-wide GVA$_{mp}$ sums sectoral GVAs. 
Sectoral calculations: 
Primary: $800-500=300$ lakh. 
Secondary: $700-300=400$ lakh. 
Tertiary: $500-200=300$ lakh. 
Total GVA$_{mp}$: $300+400+300 = \boxed{1000\ \text{lakh (Rs.)}}$. 
Notes: We assume all figures are at market price and produced during the accounting year; double counting is avoided by subtracting intermediate inputs. If one needed GDP at market price, and if there were only these three domestic sectors with no net product taxes/subsidies adjustments given, the total GVA$_{mp}$ would equal GDP$_{mp}$. If data were at basic prices, we would add product taxes less subsidies to reach market prices.