Valuables
Topic: National Income Accounting: GDP, GVA and Welfare · NCERT: Class 12, Ch 2 "National Income Accounting"
Meaning
Valuables are goods such as gold and jewellery that people buy mainly to hold as a store of value, meaning a way to keep wealth safe over time. They are not bought to use up or to produce other goods. In India's expenditure-side GDP, the acquisition of valuables is counted as part of investment: Investment = Gross fixed capital formation (GFCF) + Change in stocks + Valuables. This matters in India, where households buy a lot of gold.
Example
In 2024-25 (Provisional Estimates, at constant 2011-12 prices), India's acquisition of valuables was ₹2.71 lakh crore, about 1.4% of GDP. It was part of total investment of ₹69.23 lakh crore.
Don't confuse with
- Gross fixed capital formation (GFCF): GFCF is spending on fixed assets such as machines and buildings that are used in production. Valuables are held only to store wealth and do not raise productive capacity.
Related concepts
- Expenditure method
- Final expenditure
- Open economy national income identity
- Private Final Consumption Expenditure
- Government Final Consumption Expenditure
- Gross Fixed Capital Formation
- Statistical discrepancy
- Income method
- Functional distribution of income