Economy
Economist believe demonetisation has reduced economic momentum (Free Available)
Finance ministry told banks to review the lending rates (Free Available)
Last date for Direct Tax Dispute Resolution Scheme extended to January
31 (Free Available)
Statutory body to standarise data from all financial sector regulators (Free Available)
The government said that it had met the 1.5-crore target for LPG (Free Available)
Mining sector will face difficulties next year (Free Available)
Helpline to address all queries related to digital payments (Free Available)
International Solar Alliance got approval from cabinet (Free Available)
Committee on Digital Payments says Aadhaar should be used as KYC (Free Available)
Centre approved re-designation of the DMIC Project Implementation Trust
Fund (Free Available)
Gold prices hits lowest price in almost a year (Only
for Online Coaching Members)
India’s export of iron items have come under scrutiny (Only
for Online Coaching Members)
FM said cashless Economy will increase revenue (Only
for Online Coaching Members)
CII says demonetisation will help in generating productive assets (Only
for Online Coaching Members)
PM says Low taxes from financial market (Only
for Online Coaching Members)
PM says demonetisation will help people switch from dead assets to
financial markets(Only
for Online Coaching Members)
Govt will not import wheat (Only
for Online Coaching Members)
Report says digitalisation in India still a distant dream(Only
for Online Coaching Members)
More than 65 lakh potential taxpayers identified by Govt(Only
for Online Coaching Members)
National company law Tribunal asked Cyrus Mistry to provide evidence(Only
for Online Coaching Members)
CII says personal income tax and corporate tax to be brought down (Only
for Online Coaching Members)
Govt has directed all public sector banks to lower fees (Only
for Online Coaching Members)
West Bengal tea-garden workers payment issue resolved (Only
for Online Coaching Members)
Rural sector faces challenges post demonetisation (Only
for Online Coaching Members)
Credit costs hinder cashless economy (Only
for Online Coaching Members)
Small firms will give boost in Budget 2017 (Only
for Online Coaching Members)
TRAI says to sustain digital payments discount must be given (Only
for Online Coaching Members)
Dedicated fund of Rs 10000 crore for infrastructure development (Only
for Online Coaching Members)
Point of sale terminals (Only
for Online Coaching Members)
Centre came up with new amnesty scheme (Only
for Online Coaching Members)
Central bank asks banks to remove IMPS, UPI charges (Only
for Online Coaching Members)
Trade deficit increased on import jump (Only
for Online Coaching Members)
Federal Reserve raised its benchmark rates (Only
for Online Coaching Members)
Chief Economic Advisor wants real estate sales under GST (Only
for Online Coaching Members)
After CPI now WPI also shows decline (Only
for Online Coaching Members)
Major ports to get full autonomy in decision making (Only
for Online Coaching Members)
S&P says demonetisation and GST would increase the tax base (Only
for Online Coaching Members)
CPI reached its lowest figures in two-years(Only
for Online Coaching Members)
Govt is looking to amend IT act to improve cyber security(Only
for Online Coaching Members)
CEPA and IBSA fund to get priority during IBSA meet (Only
for Online Coaching Members)
Mistry removed as director after Tata Industries EGM (Only
for Online Coaching Members)
Indian railways may soon build exclusive tracks for suburban trains (Only
for Online Coaching Members)
Trade costs of India high: UNESCAP (Only
for Online Coaching Members)
Aditya Birla Group health insurance (Only
for Online Coaching Members)
EC must consider state funding of polls: Nirmala (Only
for Online Coaching Members)
GST Council fails to reach consensus on key issues(Only
for Online Coaching Members)
RBI to issue new Rs. 20, 50 notes(Only
for Online Coaching Members)
Undisclosed income found in Jan Dhan(Only
for Online Coaching Members)
BRICS to eliminate tax evasion(Only
for Online Coaching Members)
India’s biggest oil refinery(Only
for Online Coaching Members)
Centre textile exports goal ‘hard to achieve’(Only
for Online Coaching Members)
Aachi CMD honoured for empowering disabled(Only
for Online Coaching Members)
GST legislation will not be passed in this session of Parliament(Only
for Online Coaching Members)
Finance Ministry asked to keep record of deposited notes(Only
for Online Coaching Members)
India should try to restrict the coal uses(Only
for Online Coaching Members)
Economist believe demonetisation has reduced economic momentum
The Centre’s decision to withdraw high value banknotes couldn’t have
come at a worse time for the recovering Indian economy as the cash crunch
that resulted from the sudden demonetisation crimped all-round demand.
Starting 2016 on a relatively weak base with gross value added (GVA)
growth at 6.9 per cent and GDP growth at 7.2 per cent in December 2015 —
economic momentum recovered towards the middle of the year.
GDP growth in March accelerated to 7.9 per cent and GVA growth rose to
7.4 per cent.
Although the upsurge hit a hurdle in June, with GDP growth for the
second quarter of FY17 falling to its slowest rate in six quarters at 7.1
per cent.
A good monsoon and an imminent pick-up in demand seemed to have placed
the economy in a sweet spot for higher growth, investments and, possibly,
job creation.
The Centre's move to withdraw high value currency notes in November
altered that script, though the government is confident that deferred
consumption will still spur growth once the initial shock of the move is
absorbed.
On the infrastructure side, the main sticking point — non-performing
assets — remains a problem independent of the effect of demonetisation, with
banks not willing to lend for such projects.
The index of industrial production on average contracted by 0.1 per cent
over the January-to-October period, with private investment faring very
poorly and any growth in the index being mostly driven by consumption.
The index reached its lowest level in the year in July, when it
contracted 2.55 per cent. The best performance was in the preceding month,
when the index grew 2.18 per cent.
Retail inflation slowed significantly over the year, while the
contraction in wholesale prices reversed.
This meant that the growth rates of the Consumer Price Index and the
Wholesale Price Index converged — coming the closest to each other in
November, when the CPI grew at 3.6 per cent and the WPI at 3.15 per cent.
Growth in gross value added has been slowing since the fourth quarter of
the previous financial year (quarter ended March 2016), when it was 7.4 per
cent.
GVA growth for the second quarter of this financial year was 7.1 per
cent, which is the lowest it has been since the quarter ended December 2015.
That was before the demonetisation announcement, which economists said
would dampen growth in the last two quarters of the fiscal.
The current account deficit has contracted sharply over the last two
years, with the amount touching $3.4 billion in September 2016, down from
$10.9 billion in September 2014.
The CAD touched a more than two-year low in the quarters ended March and
June, coming in at just $300 million.