 "RBI, reserve bank of India")
The Reserve Bank of India has decided to use Gross Domestic Product (GDP), instead of Gross Value Added (GVA) to measure economic activity in the country.
The change, said Viral Acharya, deputy governor, is to conform with international practice, for ease of comparison. Globally, the performance of economies is gauged in terms of GDP. This approach is also taken by multilateral institutions, international analysts and investors.
GVA gives a picture of the state of economic activity from the producers' side or the supply side. GDP gives the picture from the consumers' side or the demand perspective.
Primarily, they all stick to this norm
