Question

Calculate the value of Net Value Added at Factor Cost (NVA_FC):

S. No.	Particulars	Amount (in ₹ crore)
(i)	Operating Surplus	3,740
(ii)	Increase in unsold stock	600
(iii)	Sales	10,625
(iv)	Purchase of raw materials	2,625
(v)	Consumption of fixed capital	500
(vi)	Subsidies	400
(vii)	Indirect taxes	1,200

Hint:

Always include 'Change in Stock', 'Subsidies', and subtract 'Indirect Taxes' and 'Depreciation' when calculating NVA\textsubscript{FC.

Answer 1

Formula: \[NVA_{FC} = \text{Sales} + \text{Change in stock} - \text{Raw material cost} - \text{Consumption of fixed capital} + \text{Subsidies} - \text{Indirect taxes}\]Calculation:\[= 10,625 + 600 - 2,625 - 500 + 400 - 1,200\]\[= 10,625 + 600 - 2,625 - 500 + 400 - 1,200= 7,300\]Therefore, Net Value Added at Factor Cost (NVA\textsubscript{FC}) is ₹ 7,300 crore.