Q.The Gross Value Added (GVA) of agriculture and allied sectors in an economy was approximately Rs. 19.5 lakh crore in one year and rose to approximately Rs. 20.9 lakh crore in the following year (illustrative, rounded figures for calculation practice). Calculate the approximate percentage growth in agricultural GVA over the year.

This is a straightforward application of the standard growth-rate formula used throughout economics to compare a variable across two time periods. …

Given (illustrative, rounded figures):

• GVA in the base year, $V_0 = Rs.\ 19.5$ lakh crore
• GVA in the following year, $V_1 = Rs.\ 20.9$ lakh crore

Formula:

Step 1 — find the absolute change:

$V_1 - V_0 = 20.9 - 19.5 = 1.4$ lakh crore

Step 2 — apply the formula:

Rounded, the growth rate is approximately 7.2%. …

Alternative check: express the ratio $V_1/V_0 = 20.9/19.5 \approx 1.0718$, so the growth rate is $(1.0718 - 1) \times 100 \approx 7.18 …

A frequent error is dividing the change by the wrong base — always divide by the earlier (base) year's value, $V_0$, not the later ye …