Demonetisation has positive impact, says Jaitley

"There is greater integration of informal economy taking place with formal economy that leads to larger and cleaner GDP, that was our objective behind the decision on demonetisation," said the Finance Minister.

By: PTI | Vadodara | Published:February 13, 2017 12:24 am
arun jaitley, demonetisation, currency ban, note ban, 500 note ban, 1000 note ban, demonetisation impact, india gdp, india growth rate, finance ministry arun jaitley, jaitley, protectionism india, india inflation, india news, indian express Finance Minister Arun Jaitley.

Union Finance Minister Arun Jaitley today said the purpose of demonetisation is served as it had led to “larger and cleaner GDP”. “Demonetisation was a bold and decisive strike in a series of measures to arrive at a bigger, cleaner and real GDP,” Jaitley told PTI at Karnali village, around 72 km from here.

The finance minister has adopted Karnali and Chandod villages in Vadodara district.

Watch what else is in the news

“Demonetisation has positive impact and India is moving to less cash economy,” he said, adding the country is moving towards “digitalisation”.

“There is greater integration of informal economy taking place with formal economy that leads to larger and cleaner GDP, that was our objective behind the decision on demonetisation,” said the Finance Minister.

On November 8 last year, the Narendra Modi government announced the demonetisation of higher value currency notes.

On the Universal Basic Income (UBI) scheme, mooted in government’s economic survey this year, Jaitley said “UBI is an idea worth considering and should be discussed by all the political parties”.

“The combined effect of the Goods and Services Tax and demonetisation would take India to a new path of reforms, enabling large part of informal economy into the formal economy,” he added.

According to Jaitley, the integration of the informal economy into a formal one would lead to higher tax revenue and thereby lower tax rates.

On rate cut, he said, “It is prerogative of the RBI to take decision on it. The banks have already reduced interest rates in recent past. Due to demonetisation, the banks are flooded with fix deposits as it has registered significant growth in the fixed deposits”.

For all the latest India News, download Indian Express App now

  1. A
    Ask
    Feb 14, 2017 at 4:28 pm
    This was not the first time demonetization has been tried in India.lt;br/gt;lt;br/gt;In past it has been ineffective as well.lt;br/gt;lt;br/gt;But with people like Feku they will not learn from past mistakes.
    Reply
    1. A
      Ajith Fredjeev
      Feb 13, 2017 at 9:24 am
      yeah right...
      Reply
      1. T
        Truth
        Feb 12, 2017 at 8:16 pm
        Yesterday FM for the first time admitted that Industrial production and GDP has had a negative impact due to Demonetization.....he clearly doesn't know what he is speaking like his master.....RBI's silence on Demonetization and FM's cautious Budget along side PM's disrupting the debate in the Parliament proves their failure !
        Reply
        1. P
          pmagarwal
          Feb 13, 2017 at 5:52 am
          A defeated candidate should not be in such a key position as he has no responsibility to people. there was reelection in Amritsar.
          Reply
          1. R
            Rsharma
            Feb 13, 2017 at 2:45 am
            Can you lookinto the future and predict, you want to see the change but don't want to put effort into it..you expect the govt to do all the work for you..Demon is one of the iconic step and it made everyone deposit their money in bank so that govt get the account of everyone..and then the recovery will start..its a part of nation build by a nationlist govt.
            Reply
            1. R
              Rsharma
              Feb 13, 2017 at 2:48 am
              People should appreciate a good measure by a nationalist govt with honest intentions. Just because you have to stand in line that doesn't make demon bad. its positive impacts will echo in years to come.
              Reply
              1. Load More Comments