The Ministry of Statistics and Programme Implementation MoSPI on January 7, 2021 released the First Advance Estimates (FAE) for the current financial year 2020-21.
- India’s gross domestic product (GDP) will contract by 7.7 per cent in 2020-21. The GDP is the total value of all final goods and services produced within the country in one financial year.
- The first advance estimates of GDP have been obtained by extrapolation of seven months’ data.
- The FPE GDP estimates will be used by the Union Finance Ministry to decide the next financial year’s Budget allocations.
- The -7.7 per cent GDP growth is a sharp one considering that India has registered an average annual GDP growth rate of 6.8 per cent since the start of economic liberalisation in 1992-93.
