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local taxes with a single unified value   November:                                November:
added tax system to turn the country      Demonetisation                           Hike in Cash
into world’s biggest single market. The                                            Reserve Ratio
April 1 implementation deadline now       The “surgical                            (CRR)
seems to be extended. A single market     strike” against black
would cut logistics cost, increase tax    money is a very                          The Reserve Bank of India (RBI)
revenue and raise inflation in the short  bold move for the                        directed commercial banks to
term. With no consensus on sharing        Indian economy. The Government had       maintain an incremental cash reserve
of administrative powers, states are      announced that all existing Rs 500 and   ratio (CRR) of 100% as a temporary
now worried over demonetisation           Rs 1,000 currency notes will no longer   measure to absorb excess liquidity
impacting their revenues. 2017 will       be legally tendered from midnight        caused by demonetised-induced surge
decide the final shape of GST.            of November 8, 2016. The move saw        in bank deposits.
                                          several problems in implementation
September: New                            along its way on grassroot levels along  December:
RBI governor                              with the opposition attacking the        Market
                                          government. The growth would be hit      Stabilisation
On September 4,                           only in short term but we will see long  Scheme
2016, the government                      term benefits of demonetisation.
has appointed Urjit                                                                The Reserve Bank
Patel as the 24th RBI                     November:                                raised Market Stabilisation Scheme
governor.                                 Victory                                  (MSS) ceiling to Rs 6 lakh crore from
                                          of Donald                                Rs 30,000 crore to manage extra
September:                                Trump                                    liquidity from the system in view of
Merger of                                                                          demonetisation.
Railway Budget                            On November 9,
with Union                                Donald Trump                             December:
Budget                                    elected as America’s 45th president.     OPEC Cut
                                          Equity markets tumbled with the
Union Cabinet approves plan to do         news of Donald Trump’s victory, but      On December 10,
away with the 92-year old practice of a   recovered fast as investors speculated   2016 OPEC and
separate Railway Budget. Rail budget      that Trump’s victory may not be as       non-OPEC members
merged with Union Budget from 2017-       harmful as the market had predicted.     reached their first deal since 2001
18.                                       The year 2017 will see how Trump's       to jointly reduce crude oil output in
                                          visa policies impacting Indian IT        order to check oversupply. OPEC
September:                                business. Trump has promised to          agreed to slash output by 1.2 million
Surgical                                  reduce the US corporate tax rate from    barrels per day from January 1, 2017.
Strike on PoK                             35 to 15%. This could lead to several    Though it will brighten the prospects
                                          American companies moving back           for the energy industry and boost
On September 29,                          to the US, hitting the Make in India     the economies of oil-rich countries,
the Indian army                           programme. Trump's threat to impose      for consumers, however, it will mean
carried out surgical strikes on terror    heavy tariffs on China and his general   higher prices. The slump pushed
launch pads in Pakistan-occupied-         hard stance towards will be favourable   several oil-producing countries such
Kashmir to target terrorists waiting      for Indian companies.                    as Brazil and Venezuela into severe
at multiple launch pads to cross over                                              recession and saw Saudi Arabia
into India.                               November:                                cutting back on spending.
October: RBI                              Mantri Garib                             December: US
Rate Cut                                  Kalyan                                   Fed Rate Hike
                                          Deposit Scheme, 2016
The RBI cuts its key                                                               US Federal Reserve
lending the repo                          Following demonetisation, the            finally raised
rate by 25 basis                          government offered a new window for      interest rates by 25
points to 6.25%.                          tax dodgers to come clean, allowing      bps in December signaling that US
This was the first policy supervised      them to declare hidden wealth by         economy is improving. The Fed hinted
by the newly set up six-member            paying an effective tax of 50% and       that it could raise rates at a faster pace
Monetary Policy Committee (MPC).          depositing 25% of undisclosed income     in 2017. Most Fed officials now project
                                          in a welfare programme called the        three or more rate hikes in 2017. If Fed
                                          'Pradhan Mantri Garib Kalyan Deposit     will hike rates in future, there are fears
                                          Scheme, 2016'.                           of increasing capital outflows from

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