Gross Fixed Capital Formation (GFCF)

  • The Gross Fixed Capital Formation (GFCF) in the Indian economy has significantly increased.
  • GFCF consists of resident producers’ investments, deducting disposals, in fixed assets during a given period.
  • It also includes certain additions to the value of non-produced assets realized by producers or institutional units.
  • Fixed assets are tangible or intangible assets produced as outputs from production processes that are used repeatedly, or continuously, for more than one year.
  • It is called "gross" because the measure does not make any adjustments to deduct the consumption of fixed capital (depreciation of fixed assets) from the investment ....
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