From the introduction of Goods and Services Tax to privatisation of Air India, the Modi government took some major policy decisions in 2017.
SBI merger with five associate banks, 1 April
Five associate banks as well as the Bharatiya Mahila Bank merged with SBI. With a post-merger asset base of Rs 32 trillion, SBI is set to break into the top-50 largest banks worldwide.
Air India privatisation, 28 June
The Cabinet Committee on Economic Affairs (CCEA) gives its in-principle approval for strategic disinvestment of Air India and its five subsidiaries. AI has a debt of almost Rs 52,000 crore.
Action against top defaulters, 13 June
The Reserve Bank of India asked PSU banks to take the country’s 12 largest defaulters to bankruptcy courts, owing to the number of bad loans that had piled up on the balance sheets of these banks.
Dynamic fuel pricing, 16 June
India joins the league of select countries such as Australia and the US where fuel prices are revised on a daily basis.
GST rollout, 1 July
The Narendra Modi government implements at midnight 1 July the Goods and Services Tax which subsumed all indirect taxes into one. The tax has four tax slabs of 5, 12, 18 and 28 per cent.
Markets reach new high, 25 July
Nifty reached the 10,000 mark for the first time in two decades as global investment is finally starting to turn towards Indian stocks
Bank recapitalisation, 24 October
The government announces a Rs 2.11 trillion bank recapitalisation plan for PSU banks to kick-start the lending process and spur private investment.
‘Ease of doing business’ rank, 31 October
India jumped 30 ranks on the World Bank’s ‘ease of doing business’ index, breaking in to the top-100 for the first time. Among the country’s top performing indicators were paying taxes, resolving insolvency and protecting minority investors.
Moody’s upgrades India, 17 November
India’s credit rating went up two notches in Moody’s ratings for the first time in 14 years. However, some economists and industrialists questioned the credibility of credit rating agencies.
PM’s advisory council, 25 September
PM’s Economic Advisory Council revived after 3 years; EAC is headed by Bibek Debroy.
Changes in bankruptcy code, 28 December
The government moves amendments to the Insolvency and Bankruptcy Code (IBC), seeking to streamline the law and plug loopholes. IBC 2016, which came into effect this year, aims to protect the interests of small investors.
Indian stock markets on top, 29 December
Indian stock markets ended 2017 among the top performers in the world. Both the Sensex and the Nifty closed the year at record highs, gaining 28 per cent and 29 per cent respectively during the year. But analysts say such growth is unlikely to be repeated in 2018.