Achieving upper end of 6.75-7.5 per cent GDP hard: Economic Survey

Achieving upper end of 6.75-7.5 per cent GDP hard: Economic Survey

The second volume of the Economic Survey 2016-17, which was tabled in Parliament by finance minister Arun Jaitley on Friday, warned that a series of deflationary impulses are weighing on the economy and are yet to gather its full momentum and still remain away from its full potential. "Also Farm loan waivers could reduce aggregate demand by as much as 0.7% of GDP, imparting a significant deflationary shock to an economy", the report cautioned. "The conclusion is inescapable that the scope for monetary easing is considerable", it said.

There are early signs of tax base expanding post the implementation of GST, it said.

Since February 2017, the rupee has appreciated by about 1.5 per cent. "Various factors such as launch of the goods and services tax (GST); positive impacts of demonetization; decision in principle to privatize Air India; further rationalization of energy subsidies and Actions to address the Twin Balance Sheet (TBS) challenge contribute to this optimism", it said.

The growth of India's services sector, which was highly resilient even during the global financial crisis, has moderated to 7.7 per cent in 2016-17, according to the Economic Survey.

Speaking on government's demonetisation initiative previous year, he also mentioned that nearly "5.4 lakh new tax payers have been included post demonetisation".

Stock limits, movement curbs on farm goods need to end.

It also noted that credit off-take from banks continued to decelerate further.

This move is expected to bring down interest rates on loans extended by banks to customers.

Trump Pledges US Will Beat Opioid Drug Epidemic
Governors in Arizona, Maryland and Virginia have already declared emergencies , The Washington Post reported . During a briefing , President trump said he's in favor of a stronger law enforcement response to the crisis.

House rent allowance may push inflation by 40-100 bps. The gross non-performing advances (GNPAs) ratio of state controlled banks (SCB) rose from 9.2 per cent in September 2016 to 9.5 per cent in March 2017, the Economic Survey said.

For more equitable access to health services, government should provide health benefits and risk cover to poorer sections of the society, the Survey urged.

Current account deficit (CAD) down to 0.7% of GDP in 201617 from 1.1% in 2015-16.

Net FDI inflows at United States dollars 35.6 billion as opposed to USD 36 billion in 2015-16. The services growth moderation is mainly due to deceleration in growth in two services categories- trade, hotels, transport, communication and services related to broadcasting (7.8 per cent), and financial, real estate and professional services (5.7 per cent), the Survey said.

Deterioration in quality learning in primary education, * Targeted enrolment in middle education a challenge.

Employment in India poses a great challenge in terms of its structure which is dominated by informal, unorganized and seasonal workers, said the Survey.

Labour market impacted by rigid laws and emergence of contract labour.

Related Articles

  • Facebook Introduces New 'Watch' Video Platform

    Facebook Introduces New 'Watch' Video Platform

    Like YouTube, Facebook also Watch publishers to earn revenue on their content, using the same 45/55 revenue split. To help users keep a tap on the shows they follow, there's also a Watchlist so users don't miss out any episodes.
    Dallas Stars 'strongly opposed' to Texas' 'bathroom bill'

    Dallas Stars 'strongly opposed' to Texas' 'bathroom bill'

    Greg Abbott convened a special session to revive the issue, but it looks unlikely to pass before that ends next week. Bob McNair, the Houston Texans owner, and Mark Cuban, Dallas Mavericks owner, have criticized the bill.
    The NBA's Top Pick Has Been Traded

    The NBA's Top Pick Has Been Traded

    Others think that he’ll continue to use the picks himself and construct a young core that can emerge after the Cavaliers vs. Fultz is an ideal scoring guard to run alongside him, and can also take over point guard duties if the Simmons experiment fails.
  • Applebee's announces it will close more than 100 locations

    Applebee's announces it will close more than 100 locations

    Same-restaurant sales at Applebee's were down 7 percent for the first six months of 2017, following a 5 percent dip in 2016. Tudor Investment Corp ET AL bought a new stake in shares of DineEquity during the first quarter worth about $403,000.
    RCom plans to issue shares to lenders in lieu of debt

    RCom plans to issue shares to lenders in lieu of debt

    Telecom operators like Airtel , Idea, Vodafone , BSNL, and more are at loggerheads to provide the most affordable data tariffs. RCom, earlier this year, received 99.99 percent shareholders' approval for the merger of its wireless business with Aircel .
    Venezuela Expresses Solidarity to 'Brother' China After Quake

    Venezuela Expresses Solidarity to 'Brother' China After Quake

    Meanwhile, another quake measuring up to 6.3 magnitude by USGS, struck 2200 km away in northwestern China on Wednesday. Residents say many who grew up as poor farmers now have cars and some can even afford second homes in big cities.
  • Watch the brand new trailer for National Basketball Association  2K18 right here

    Watch the brand new trailer for National Basketball Association 2K18 right here

    You'll get a good taste of how the gameplay works with the demo, and any progress you make will carry over into the final product. Additionally, new Nike uniforms , player accessories and sneakers have been scanned in to bring the title up to date.
    Earnings on the Doorstep For JC Penney Company, Inc

    Earnings on the Doorstep For JC Penney Company, Inc

    On June 27, 2017 the stock rating was set at "Hold" according to a Gordon Haskett report a boost from the previous " rating. Zacks Investment Research's price objective would indicate a potential upside of 21.12% from the stock's current price.
    Swiss franc, yen rise as North Korea tensions brew

    Swiss franc, yen rise as North Korea tensions brew

    ET (1503 GMT), the Dow Jones Industrial Average .DJI was down 110.36 points, or 0.5 percent, at 21,938.34, the S&P 500 . About 7.5 billion shares changed hands on US exchanges, well above the 6.25 billion average for the last 20 days.
  • Iheanacho to Lead City's Attack against Arsenal

    Iheanacho to Lead City's Attack against Arsenal

    He's only going to get better. "He wants to get better, he wants to play regularly and hopefully we can give him that platform".
    Wayde Van Niekerk wins silver in 200m, Makwala finishes 6th

    Wayde Van Niekerk wins silver in 200m, Makwala finishes 6th

    Van Niekerk only made it into the final as a fastest loser finishing third in his semi in 20.28 as he bids for a double. I delivered my best race at the right time. "I will never try and fill Usain's shoes, or Michael's", said van Niekerk.
    Wall Street tumbles on North Korea worries

    Wall Street tumbles on North Korea worries

    The share price of G4S, the world's largest security group, fell 5.38% amid its organic growth cooling down in emerging markets. While the French CAC 40 Index fell by 0.6%, the German DAX Index slumped by 1.1% and the UK's FTSE 100 Index plunged by 1.4%.