Economic Survey Volume II key highlights: Economy relatively resilient to demonetisation

The growth of India’s services sector which was highly resilient even during the global financial crisis has come down to 7.7% in 2016-17

The mid-year survey, tabled in Parliament, also said that although India's social policies have focused on welfare of the people, challenges remain in overcoming social and economic barriers to advance capabilities of the marginalised, women and other weaker sections of the society.

The Survey said that the capital flows and exchange rate in turn will be influenced by the outlook and policy in advanced economies, especially the USA, the recent nominal exchange rate appreciation, the monsoon, the introduction of the GST, the 7th Pay Commission awards, likely farm loan waivers and the output gap. "Current inflation, at 1.5 per cent, is running well below the 4 per cent target, with the domestic economy lacking the dynamism to push this back toward the target", it said.

"This growth suggested that the economy was relatively resilient to the large liquidity shock of demonetisation which reduced cash in circulation by 22.6 per cent in the second half of 2016-17", it said. As percentage to GDP, the expenditure on social services was at 7.4 per cent during the fiscal. "There are 5.4 lakh New Tax Payers Post-Demonetisation and its impact on the informal economy has increased". He also said that farmer loans are going to have a deflationary, not inflationary effect if states' borrowing limit is not raised.

Besides, the survey said, India's rank in Human Development Index (HDI) is at 131 out of 188 countries as per HDR, 2016, leaving much to be desired.

A number of indicators - GDP, IIP, credit offtake, investment and capacity utilisation - point to a deceleration in real activity since first quarter of 2016-17 and a further deceleration since the third quarter.

Buffalo Bills make a splash, acquire Jordan Matthews and EJ Gaines
As for Darby, who finished second in voting for defensive rookie of the year in 2015, he has two years remaining on his contract. Watkins had been the Bills starter since Buffalo traded up five spots in the 2014 draft to select him with the No. 4 pick.

Hader kills it as 'The Mooch'
America clearly can't get enough of Scaramucci , and thankfully, the Mooch is indulging us. "Everybody loves the Mooch". And because they've been away for a while, they updated everyone about the recent White House staff carousel.

Sunderland house 'blown apart' after explosion
It was understood there were no injuries from the other half of the semi which remained standing but appeared very badly damaged. Locals were quick to offer help with people wanting to donate toys and clothes and they set up an online fundraising page.

One of his favourite pinch-inflation easing out so should the monetary policy be has found its way into the Survey.

Disinflationary pressures allowed the Reserve Bank of India (RBI) last week to cut its main policy rate - the first easing by an Asian central bank this year - by 25 basis points to 6 percent, the lowest since November 2010. These include farm loan waivers, real exchange rate appreciation, increasing stress to balance sheet in power, telecom, agricultural stress and of course all these coupled with challenges from implementation of the GST. "The conclusion is inescapable that the scope for monetary easing is considerable", he said.

Stating that there are early signs of tax base expanding under GST and nominal GDP growth has accelerated after demonetisation, the CEA said in a press conference later "Demonetisation will continue to pay dividends over time". "The survey rightly pin pointed moderation in growth in industrial output as also services, the key drivers of the economy".

Even as the important actions taken by the Government and the RBI to address the twin balance sheet (TBS) challenge is playing out, there is need to as an ongoing priority think about a strategy that would complement the current resolution efforts with reform and recapitalisation.

Related news:

Hot News

isis-killer-beheading-video-story-top North Korea Aside, Guam Faces Another Threat: Climate Change
Aug 12, 2017 - 01:54
Andersen Air Force Base and Naval Base Guam house an estimated 13,000 military members and their dependents. The Pentagon said in a 2014 report that climate change posed an immediate threat to national security.

Today Analysts Focus on Pfizer Inc. (PFE), NVIDIA Corporation (NVDA)
Aug 12, 2017 - 01:48
RB Capital Management purchased a fresh position in NVIDIA Corporation through out the Fiscal Q2 assessed at roughly $272,000. It worsened, as 69 investors sold NVDA shares while 306 reduced holdings. 121 funds opened positions while 183 raised stakes.

isis-killer-beheading-video-story-top Unusual odor, flu-like symptoms at NH hospital prompts partial evacuation
Aug 12, 2017 - 01:39
Calls for assistance were made at about 11:15 am. "Most have reported they are now feeling better". No patients experienced any symptoms but six were transported from the emergency room, she added.

isis-killer-beheading-video-story-top Nawaz Sharif''s wife files nomination to contest his Lahore seat
Aug 12, 2017 - 01:35
Sharif is now holding rallies across Punjab, where the city of Lahore - the Sharif family's home town - is the provincial capital.

isis-killer-beheading-video-story-top Russian Federation ready for equitable dialogue with European Union and US - Lavrov
Aug 12, 2017 - 01:23
He added he hoped "common sense will prevail", and said Russian Federation would not accept a nuclear North Korea. Russian Federation has repeatedly voiced concern over the escalation on the Korean peninsula.

isis-killer-beheading-video-story-top Ezekiel Elliott Suspended Six Games By NFL
Aug 12, 2017 - 01:13
The 22-year-old led the league in rushing as a rookie last season, picking up 1,631 yards and 15 touchdowns on 322 carries. Columbus police said they did not arrest or charge Elliott due to conflicting statements from the victim and witnesses.

isis-killer-beheading-video-story-top No Man's Sky Gets Its Biggest Update yet with Inclusion of Multiplayer
Aug 12, 2017 - 01:07
We're adding much more depth to trading, making it an interesting and viable way to make a living in the game. Space stations now have a Mission Agent who provides you with "unique and rewarding new tasks".

isis-killer-beheading-video-story-top Raila dismisses presidential election results as 'pure fraud'
Aug 12, 2017 - 01:02
The IEBC said it will announce the results by noon local time if all the validation from the polling station results are done. Lawrence University, says that despite the tension, it is unlikely that it will lead to widespread unrest.

isis-killer-beheading-video-story-top Bills trade Watkins and Darby, acquire Jordan Matthews, EJ Gaines
Aug 12, 2017 - 00:55
Watkins becomes far and away the biggest offensive weapon on that offense, both literally and figuratively. In Buffalo, Matthews also steps in as the logical No. 1 target for Bills quarterback Tyrod Taylor .

isis-killer-beheading-video-story-top 76ers, Celtics to play in NBA London Game on January 11
Aug 12, 2017 - 00:49
But fans who have already purchased season tickets and are wondering what this means for them, don't fret; the Sixers have a plan. The NBA announced today that the Celtics will play an Atlantic Division game across the Atlantic.

isis-killer-beheading-video-story-top 5 transgender military members sue President Trump over planned ban
Aug 12, 2017 - 00:47
If the ban is imposed, it will violate the constitutional rights of five transgender women who are serving the army. The suit is expected to be the first of several filed once the ban is officially issued.

isis-killer-beheading-video-story-top We're Having Conversations - Jose Mourinho Confirms Zlatan Ibrahimovic Re-Signing Talks
Aug 12, 2017 - 00:47
Zlatan Ibrahimovic is in talks with Manchester United over returning to the club, manager Jose Mourinho has confirmed. We also got a central midfielder and a striker.

isis-killer-beheading-video-story-top Federal Bureau of Investigation says Islamic State used eBay, PayPal to send cash to US
Aug 12, 2017 - 00:46
Elshinawy used the money to buy a laptop, a cell phone and a virtual private network to communicate with terrorists, the affidavit says.

isis-killer-beheading-video-story-top JC Penney Shares Sink After Losses Exceed Expectations
Aug 12, 2017 - 00:45
TRADEMARK VIOLATION WARNING: This piece was published by Transcript Daily and is the property of of Transcript Daily. The 12-month consensus mean price target for the stock is $5.43, reflecting a 36% upside from current levels.

isis-killer-beheading-video-story-top Google celebrates the birth of hip-hop with new interactive Doodle
Aug 12, 2017 - 00:43
On the Google Doodle webpage, he said: "It all started in the NYC Bronx, more commonly known as the Boogie Down Bronx". Meanwhile, the artistic work in today's Google Doodle is the work of a graffiti artist named Cey Adams .