Amid demonetisation PM to meet economists

Prime Minister Narendra Modi will meet economists at Niti Aayog on Tuesday to take stock of economy amid demonetisation-inducing cash crunch and slowing businesses.

The meeting coming ahead of the Budget, assumes significance as the Prime Minister is expected to discuss with the economists about budgetary measures that could reduce pain of people suffering due to demonetisation.

Demonetisation has also lowered India's economic growth projection and threatened to halt job growth. The Reserve Bank of India (RBI) recently reduced India's GDP growth forecast to 7.1% from 7.6% in the current fiscal ending March 2017.

Some global agencies including Asian Development Bank have also pared the growth forecast.

The economists participating in Tuesday's meeting are also expected to throw some light on how to increase tax net in the country. Recently, the Niti Aayog had said that merely 1% people in India pay income tax.

Amid criticisms that demonetisation has helped little in countryside due to utterly slow speed of Internet and banking penetration, the Prime Minister is also expected to discuss ways to push cashless payments with economists.

The government had launched two lucky draw schemes on Sunday for consumers and businesses. Niti Aayog has been entrusted with the task of promoting the same.
The theme of the meeting is Economic Policy Reform: Road Ahead.

The Prime Minister has promised a 50-day window to reduce common man’s pain due to demonetisation. It is coming to an end on December 30. Sources said there could be a brainstorming on additional measures to bring the situation back to normalcy.