Achieving the high end of the 6.75-7.5 per cent growth projected previously will be difficult due to appreciation of rupee, farm loan waivers and transitionary challenges from implementing GST, the Economic Survey said today.

For the first time today, the government presented a second or a mid-year economic survey for the year 2016-17 (rpt 2016-17) highlighting the new factors that the economy faces since the last such exercise in February.

It also said that the scope for monetary easing was considerable and this, coupled with reform to address the twin balance sheet challenge, will help the economy achieve its full potential quicker.

"Cyclical conditions suggest that the policy rate should actually be below... the neutral rate. The conclusion is inescapable that the scope for monetary easing is considerable," he said.

The Economic Survey said that a number of indicators-- GDP, IIP, credit, investment and capacity utilisation, point to a deceleration in real activity since first quarter of 2016-17 and a further deceleration since the third quarter.

The first volume of the Survey in February had predicted the range of GDP growth of between 6.75-7.5 per cent, factoring in more buoyant exports, a post-demonetisation catch-up in consumption and a relaxation in monetary conditions consequent upon demonetisation.

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