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 USD
60.2 billion in 2016-17 from USD 55.6 billion in 2015-16.
* Net FDI inflows at USD 35.6 billion as opposed to USD 36
Billion in 2015-16.
* India's forex reserves of USD 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
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