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GDP at factor cost= Net value added + Depreciation. Here my question is why depreciation added to Net value added? I am confused here: Net value added = Gross value added - depreciation; so the above formula becomes GDP at factor cost= Gross value added - depreciation + Depreciation. Here depreciation get cancelled and finally becomes GDP at factor cost= Gross value added.

Dear student,

explanation given by  Dhvani Sharma is absolutely correct,

domestic product and value added are one and the same thing so 
GDP at factor cost= Gross value added
 
​​​​​​or GDPFC - depreciation = GVA(gross value added) -depreciation
  Which means NDPFC= NVA(Net value added)

Regards

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No , the formula is correct. When we go from net to gross depreciation i.e. consumption of fixed capital is added and from gross to net depreciation is subtracted.
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NVAfc is basically NDPfc so to go from GDPfc to NDPfc depreciation will be added only
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1) GDP=NDP+D. 2) GVA=NVA+D These formulae ok. But GDP=NVA+D is this possible, if possible give an illustration.
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See , VA is actually DP. As value added to goods is actually what is produced in the economy. So , VA= GDP
Now , GDPfc = NVAfc + Dep
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VA = DP
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Finally, GDP= GVA, NDP=NVA. Therefore GDP=NVA+D. This is your your answer, right?
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Yes !
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