Explanation

• The difference between Gross Value Added (GVA) and Net Value Added (NVA) is depreciation.
• Gross Value Added (GVA) represents the total value generated by a firm, industry, or sector, minus the value of intermediate goods used in production. It is essentially the value of output minus the value of intermediate goods.
• Net Value Added (NVA) is Gross Value Added minus depreciation. Depreciation accounts for the wear and tear of capital goods used in production, which reduces their value over time. So, NVA provides a measure of the net contribution to the economy after accounting for depreciation.