What it says about growth, demonetisation and more

India's economy should grow between 6.75% and 7.5% in the financial year beginning on April 1, a government report estimated on Tuesday.

The Economic Survey, which sets the scene for Finance Minister Arun Jaitley's fourth annual budget on Wednesday, forecast that Asia's third-largest economy should steady after a hit from the government's shock decision in November to scrap most cash in circulation.

The survey was prepared by the finance ministry's chief economic adviser Arvind Subramanian.

Here are the highlights of the report:

GROWTH

• 2017/18 GDP growth seen between 6.75% and 7.5% year on year

FISCAL DEFICIT

• Implementation of wage hike, muted tax receipts to put pressure on fiscal deficit in 2017/18

INFLATION

• The average consumer price index (CPI) inflation rate declined to 4.9% in 2015/16 from 5.9% in 2014/15

DEMONETISATION

• Remonetisation will ensure that the cash squeeze is eliminated by April 2017

MONETARY POLICY

• Sharp rise in prices in 2017/18 may cap monetary easing headroom - ET NOW on Twitter

GOVERNMENT DEBT

• Government debt to GDP ratio in 2016 seen at 68.5% down from 69.1% in 2015

BANKING

• Suggests setting up public sector asset rehabilitation agency to take charge of large bad loans in banks

TAXATION

• Income tax rates and real estate stamp duties could be reduced

UNIVERSAL BASIC INCOME

• Universal Basic Income (UBI) proposal a powerful idea, but not ready for implementation

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