GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Economic Activity 'Adversely' Affected by Note Ban, Says Economic Survey

The Economic Survey has analysed the macro economic effects after Demonetisation. It concludes that: “The balance of evidence leads to a conclusion that real GDP and economic activity has been affected adversely, but temporarily by demonetisation. The question is: how much?” The survey lists the following points as evidence.

Tushar Dhara | News18.com

Updated:January 31, 2017, 3:30 PM IST
facebookTwittergoogleskypewhatsapp
Economic Activity 'Adversely' Affected by Note Ban, Says Economic Survey
Chief Economic Adviser Arvind Subramanian addresses media on Tuesday.

New Delhi: The Economic Survey has analysed the macro economic effects after demonetisation. It concludes that: “The balance of evidence leads to a conclusion that real GDP and economic activity has been affected adversely, but temporarily by demonetisation. The question is: how much?”

The survey lists the following points as evidence:

- Outflow of foreign portfolio investment, amounting to $9.8 billion in November and December

- Aggregate sowing of the two major Rabi crops — wheat and pulses —exceeded last year’s planting by 7.1% and 10.7%
- Property markets in the major cities, and sales of two-wheelers show a marked decline
- Indirect tax performance stripped of the effects of additional policy changes in 2016- 17 look less robust than the headline number
- Decisive policy actions to dispel fears of overzealous tax administration will help ensure that the gains of demonetization are permanent
- Private investment is unlikely to recover significantly
- Risk to economic growth from the extent to which effects of demonetisation could linger into next year, especially if uncertainty remains on the policy response
- Currency shortages also affect supplies of milk, sugar, potatoes and onions
- Magnitude of fiscal windfall from return of demonetized notes and Pradhan Mantra Garib Kalyan Yojana (where black money from VDIS will be deposited) uncertain
- The transition to the GST is so complicated from an administrative and technology perspective that revenue collection will take some time to reach full potential
- Muted non-tax revenues and 7th Pay Commission payout could add to fiscal deficit.
- An economy recovering from demonetisation will need policy support
- One radical idea to consider is the provision of a universal basic income

Also Watch

| Edited by: Nitya Thirumalai
Read full article
Next Story
Next Story
facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Sun Pharma 569.65 +28.20 +5.21
Tata Steel 677.75 +40.20 +6.31
Jubilant Life 883.80 -108.00 -10.89
Fortis Health 159.95 +13.65 +9.33
Infosys 1,155.65 -5.10 -0.44
Company Price Change %Gain
Sun Pharma 570.20 +28.05 +5.17
Jubilant Life 891.30 -100.85 -10.16
NTPC 162.80 +2.30 +1.43
ICICI Bank 321.30 +3.30 +1.04
Fortis Health 159.95 +13.65 +9.33
Top Gainers
Company Price Change %Gain
Tata Steel 677.75 +40.20 +6.31
Sun Pharma 569.65 +28.20 +5.21
UPL 700.55 +25.10 +3.72
Tech Mahindra 621.45 +18.85 +3.13
Vedanta 337.90 +9.25 +2.81
Company Price Change %Gain
Tata Steel 677.80 +39.95 +6.26
Sun Pharma 570.20 +28.05 +5.17
Yes Bank 323.60 +7.20 +2.28
Dr Reddys Labs 2,169.25 +47.95 +2.26
Bharti Airtel 425.45 +9.40 +2.26
Top Losers
Company Price Change %Gain
GAIL 458.40 -7.75 -1.66
Asian Paints 1,101.80 -16.30 -1.46
Eicher Motors 26,724.40 -144.10 -0.54
M&M 718.65 -3.30 -0.46
Infosys 1,155.65 -5.10 -0.44
Company Price Change %Gain
Asian Paints 1,101.90 -14.45 -1.29
Coal India 310.45 -1.60 -0.51
Infosys 1,155.65 -4.85 -0.42
M&M 719.30 -1.60 -0.22
HUL 1,323.00 -2.15 -0.16

Live TV