New Delhi, June 14 -- Gross domestic product (GDP) growth rate is the headline number everyone tracks to figure out how the economy is doing. It's time we shifted focus to gross value added, or GVA, which is a more direct measure of the incomes generated in the economy. That's because GDP numbers are affected by random decisions by the GST Council to raise tax rates or by the government to slash subsidies.

Cut subsidies, boost growth. Such a prescription might seem like snake oil for the consumption of the simpleminded. But cutting subsidies has, indeed, been the simple route to boost GDP growth in India. India's GDP growth in the final quarter of 2024-25 was a dramatic 7.4%. The growth in GVA, which is what counts for creating jobs and ...