Question

From the following data calculate net value added at Factor Cost.

	(Items)	(Rs. in crore)
i	Purchase of Intermediate Goods	500
ii	Sales	750
iii	Import of Raw Materials	50
iv	Depreciation	60
v	Net Indirect Taxes	100
vi	Change in Stock	(-)30
vii	Exports	20

Answer 1

NVA_FC = Sales + Change in Stock - Purchases of intermediate goods - Depreciation - Net Indirect taxes.

= 750 + (-30) - 500 - 60 - 100 

= 750 - 30 - 500 - 60 - 100

= 750 - 690

= Rs. 50 crore.