Feb 27, 2016: Economic
Survey 2015-16, Twin Balance Sheet problem and their redressal
General Studies: Daily Capsule
Curtain Raiser –News Update (Feb 27, 2016)
Economic Survey
2015-16:
|
Projected GDP growth in 2016-17
|
7-7.75%
|
|
Estimated GDP growth for 2015-16
|
7.6%
|
|
Fiscal deficit target can be achieved for FY 2016
|
3.9% of GDP
|
|
|
|
|
Twin Balance Sheet (TBS) problem
|
·
the impaired
financial positions of public sector banks which are burdened with high
non-performing assets
·
some large corporate houses under financial
stress due to slow down in demand internationally
|
|
4 R’s to address TBS
|
·
Recognition
·
Recapitalization
·
Resolution
·
Reform
|
|
4 R’s
|
·
Recognition: Banks
must value their asset as far as possible close to true value
·
Recapitalization:
Banks capital position must be safeguarded via infusions of equity
·
Resolution: Underlying
stressed assets in corporate sector must be sold or rehabilitated
·
Reform: Future
incentives for private sectors and corporates must be set-right
|
TPP and Make in
India:
|
Trans Pacific Pact (TPP)
|
US led mega regional free trade pact
|
|
India’s decision to join TPP at a future date may have adverse effect
on the Make in India Initiative
|
|
|
TPP would prevent the Indian government from using state-owned
enterprises and government procurement
as vehicle for achieving social and economic objectives, including
employment generation, thereby have to compromise on the Make in India
Initiative policy
|
|
Source: Survey outlines step to boost Make in India by Arun
S, Feb 27, 2016, The Hindu
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