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First Mid-Year Economic Survey Tabled In Parliament: Highlights

It will be 'difficult' to achieve upper end of 6.75-7.5 per cent real GDP growth predicted in January, the survey noted.

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First Mid-Year Economic Survey Tabled In Parliament: Highlights

Part-2 of Economic Survey for 2016-17 was tabled in the Parliament today


New Delhi: Following are the highlights of Part-2 of Economic Survey 2016-17, tabled in Parliament today:

- Difficult to achieve upper end of 6.75-7.5 per cent real GDP growth predicted in January.

- Fiscal deficit expected to decline to 3.2% of GDP in 2017-18, compared with 3.5% in 2016-17.

- Retail inflation likely to remain below 4% by March.

- Fiscal outlook for 2017-18 is uncertain.

- Considerable scope for monetary policy easing; Repo Rate 25-75 basis points above neutral rate.

- Structural reform agenda includes implementing GST, Air India privatisation, rationalising energy subsidies, addressing twin balance sheet challenge facing banks.

- Early signs of tax base expanding post implementation of the Goods and Services Tax (GST).

- Nominal GDP growth accelerated post demonetisation; 5.4 lakh new tax payers post note ban.

- Demonetisation may continue to pay dividends over time.

- Farm loan waiver could cut economy demand by up to 0.7% of GDP; State farm loan waivers could touch Rs 2.7 lakh crore.

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

- Credit off-take from banks continued to decelerate.

- Private banks' loan growth more robust than of PSU banks.

- House rent allowance may push inflation by 40-100 bps.

- Economy lags dynamism to push inflation towards 4%.

- Geopolitics not as big a risk for oil prices as before.

- Gross non-performing advances (GNPAs) ratio of Scheduled Commercial Banks (SCBs) rose from 9.2 per cent in September 2016 to 9.5 per cent in March 2017.

- India targets to lower the emissions intensity of GDP by 33-35 per cent by 2030; will raise share of non-fossil fuel based power generation capacity to 40 per cent.

- Urgent need to increase access of the poor to more efficient energy resources.

- Current account deficit (CAD) down to 0.7% of GDP in 2016-17 from 1.1% in 2015-16.

- Gross FDI inflows to India increased significantly to $60.2 billion in 2016-17 from $55.6 billion in 2015-16.

- Net FDI inflows at $35.6 billion as opposed to $36 billion in 2015-16.

- India's forex reserves of $386.4 billion second largest after Brazil among major economies.

- Green shoots on trade horizon; world trade growth projected at 3.8% and 3.9% in 2017 and 2018.

- India's trade growth picking up.

- Deterioration in quality learning in primary education,

- Targeted enrolment in middle education a challenge.

- Employment poses great challenge in structure dominated by informal, unorganised and seasonal workers.

- High levels of under-employment, skill shortages.

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



 

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