Context:
The Union Government has released the First Advance Estimates (FAE) of national income for FY 2025–26, projecting real GDP growth at 7.4%, up from 6.5% in FY25.
The estimate comes amid global trade uncertainties, particularly high U.S. tariffs on Indian exports, affecting labour-intensive sectors.
What are First Advance Estimates (FAE)?
• Earliest official estimate of annual GDP growth
• Released before the financial year ends (early January)
• Prepared by the National Statistical Office (NSO), MoSPI
• Used as the base document for Budget formulation
• Based on partial data (first 7–8 months of the year)
FAE is not final — it is revised later through Second Advance Estimates and Provisional Estimates as more data becomes available.
