Few hours after the surprise announcement by Prime Minister Narendra Modi on the demonetizing the currency notes of Rs 500 and Rs 1000, industry came forward in support of this move, Indian masses have expressed an unprecedented support for this move, writes Faiz Askari, founder editor of SMEStreet.
However, some sections of the society expressed their concerns over the rushed-up approach towards this decision and as a first reaction to this move, weaker section of the society also expressed their unsatisfaction for this move.
But, on the longer term, this move is and must be considered as the real game changer of the India’s economic reform.
Industry and market analysts have also shared their views on this move. Mukesh Butani, Managing Partner, BMR Legal, said, “An unprecedented, bold move leading charge from the front, the PM in the most secretively planned, seamlessly executed a move to root out unaccounted and counterfeit currency. A combination of national security concerns and wider agenda to filter out unaccounted income guided the Government to make this move. Figures of high denomination currency in circulation in past 5 years compared to growth in the economy pointed towards indicators of unaccounted money in circulation. Timing was perfect – a month after closure of the income disclosure week and a week after Diwali such that the impact of short term disruption in festive period is minimised.”
Mukesh specializes in international tax, policy, transfer pricing, tax litigation. He advices on FDI policy, entry strategy, business re-organisations, cross-border tax structuring, tax controversy and regulatory policy across a range of sectors
Commenting on this development, Mr Anwar Shirpurwala, Executive Director, MAIT stated, “MAIT compliments Prime Minister Modi for his action against corruption and black money and strongly supports the Government in its mission of transformation of India. We applaud the decision taken by the government to eradicate black money. The move taken by the govt. clearly indicates that we will be depending more and more on the ICT. This move has been possible because of the availability of technology and multiple means of financial transaction. This also calls for the Govt to further look for means of increasing IT penetration, thus enabling every citizen to use technology tools and services for cashless transactions. Govt. should continue to give more emphasis on technology led schemes and programs for the betterment of the economy growth.”