Gross domestic capital formation is always greater than gross fixed capital formation

False,

Gross domestic capital formation can be less than gross fixed capital formation if the change in stock is negative.

Explanation:-

Gross domestic capital formation is the sum of

1. Gross domestic fixed capital formation
2. Change in stock (Closing stock – Opening stock)

Formula is

Gross Domestic Capital Formation = Gross Fixed Capital Formation + Change in Stock (Closing stock – 0pening stock)

If change in stock is negative, the gross domestic capital formation can be less than the gross fixed capital formation.