Finance Minister Arun Jaitley has made important statement regarding digitalisation of India. Jaitley said, the demonetisation of Rs. 500 and Rs. 1000 notes will cause less liquidation in country which will strive users to shift into electronic transactions.
He also mentioned that, ” You will take the country further towards digital currency. That is already happening”. Further he added that, ” Volume of formal trade, volume of business will grow but paper currency will shrink. The balance will be replaced by debit cards, e-wallets.”
Elaborating it, he also mentioned that, the goods and services tax(GST), which is one of the biggest economic reforms in India, will be in place by September 16, 2017. Also, the GST will be rolled out by the government on April 1, 2017.
PM Modi made announcement of demonetisation on November 8, 2016 which will set as a milestone in the history of economy of India. The move help in cleaning up the economic system of country.
Promoting this historic move, Jaitley added, ” I have least doubt in my mind that (one year from now) you will have a bigger economy, higher GDP, cleaner GDP”. He assured saying, ” You will have a higher tax base and more money in banks, and probably interest rates will be more reasonable. Therefore, all these collectively could contribute a lot as far as GDP is concerned”.
As per Jaitley’s concerns, demonetisation will surely shed impact on growth but not for too long. The decision of dismissal of currency which had 86% part in total currency value , was taken to abolish black money from the market. This is also promoting digital payments in country which is undoubtedly a good thing.
“I personally believe that once the remonetisation process is complete and GST is implemented, it’s going to hugely impact India’s businesses and also the Indian way of life,” the finance minister mentioned.
