The government’s decision to scrap high-value banknotes is going as per plan and will stamp out illegal incomes from the economy, Union minister Piyush Goyal said on Saturday during the second session of the Hindustan Times Leadership Summit.
Here are the top 10 takeaways from the session:
• Demonetisation is part of a series of efforts to curb black money and corruption, and make a difference to the mindset of people and businesses. There will be short-term pain of about 50 days but the people of India have shown tremendous support
• Don’t understand how some economists have said that demonetization will hurt the economy. If you’re moving a part of the informal economy to formal, it will only add to the GDP. If people have postponed spending, it will be made up in the next two or three will quarters. Rabi (winter crop) sowing is up 8.5-9%
• Auto industry numbers are down but if the government has been able to stop people from buying vehicles in cash, it should be welcomed. The government should be able to track every such transaction, otherwise terrorist activities, petty or serious crimes can never be traced
• This is a responsive government that adapts to change. The administration didn’t have enough time to prepare for some logistical issues to keep demonetization a secret. This government knows how to keep a secret.
• From the countryside, people are taking pain on the chin and are delighted with the demonetization move. This is often not reported.
• Only people with illegitimate wealth will worry, for the first time the honest people are feeling there’s a premium on their honesty. The mindset had become ‘chalta hai’ but – but India loves disruptive change when it’s better for the country.
• The BJP will sweep the upcoming elections, will win two-thirds support in Uttar Pradesh. The enthusiasm among the people in a state that elected the prime minister is unparalleled. In Punjab, the Akali-BJP combine will win.
• Political parties should be funded liberally. At the end of day, good governance for political parties is good for India. Replacing bad money with good money is good for India.
• There are times in history when one has to take bold decisions that have a long-lasting impact on economy and the way people conduct business. Demonetisation is one decision to change the way people think and work, it makes the honest feel respected for the first time. This decision will change the course of the economy.
• Expanding renewable energy is an article of faith with the Modi government. But looking at the “polluter pays” principle, it is the larger responsibility of the developed world to support India’s renewable energy thrust. We hope the West will come up to their promises. So far their effort has been terrible.
For live updates from HTLS 2016, click here.