First, a background. There are two ways to estimate GDP growth numbers. The first is by estimating what different industries like agriculture, manufacturing, construction etc., have produced. The second way is to estimate the expenditure by private consumers, government and investment by companies. This is where you will find ‘valuables’.
Valuables are money spent in buying precious stones and metals like gold, diamonds and silver. Some might argue these are investments, and therefore capital. But they cannot be classified as capital as they are stored and not put to use. So a separate head is created while estimating GDP.
Measured at 2011-12 prices, valuables stood at Rs 22,129 crore in April – June 2016 as compared to Rs 43,138 crore in April – June 2015.
The big question: Is this an exception or an indicator of Indians finally moving away from buying gold?