Context: Recently, the Ministry of Statistics and Programme Implementation (MoSPI) released the First Advance Estimates (FAE) for the current financial year. 

More on the news: According to MoSPI, India’s gross domestic product (GDP) - the total value of all final goods and services produced within the country in one financial year - will contract by 7.7 per cent in 2020-21. 

Significance of Advance estimates: 

  • For any financial year, the MoSPI provides regular estimates of GDP. The first such instance is through the FAE. 
  • The FAE for any particular financial year is typically presented on January 7th. 
  • Their significance lies in the fact that they are the GDP estimates that the Union Finance Ministry uses to decide the next financial year’s Budget allocations. 
  • The FAE will be quickly updated as more information becomes available. 


Source: Financial Express