For the first time, the government presented a second or a mid-year Economic Survey for the year 2016-17, highlighting the new factors that the economy faces since the last such exercise in February. It said the government and the Reserve Bank of India have taken “prominent steps” to address the twin balance sheet challenge, which has boosted market confidence in the short run. Also, the removal of check-posts and smoother movement of transport after the implementation of the Goods & Services Tax can provide some short- term fillip to economic activity. The Survey said that the balance of risk to achieving the 6.75-7.5 per cent growth has shifted to the downside. ”The balance of probabilities has changed accordingly, with outcomes closer to the upper end having much less weight than previously,” it said.

Source: The Telegraph August 11, 2017 09:33 UTC