During Narendra Modi‘s six day tour to four nations, in an interview to Handelsblatt, Germany’s largest selling business daily, PM praised demonetisation and said it received “popular support”.
Narendra Modi spoke about the historical and bold move taken by his government in November 2016, banning the use of ₹500 and ₹1000 note in India to Handelsblatt. He said that demonetisation was directed at curbing corruption, fighting black economy and dealing firmly with counterfeit currency and terror financing.
Replying to the question asked during the interview to Handelsblatt, he said that Demonetisation was a benificial move and it was largely supported by everyone. He further appreciated Indian public, saying that, though the people of India faced cash crisis for some time, but they all supported the government, seeing the future benefits of the move.
Modi also said that demonetisation had led people to use formal banking channels for economic transactions, which is improving government revenues. He further added that these revenues generated will allow the government to undertake more public welfare measures, especially for the poor.
Prime Minister also spoke about the GST, which is likely to be implemented in India from July 1. He said that it is one of the biggest economic reform taken in the history of India. With the implementation of GST, India will be a single unified market as far as taxation is concerned. “My government is strongly committed to continued economic reforms. We are working to roll-out our ambitious GST in July this year”, Modi said.
He urged the German investors to make use of one of the most liberal FDI regimes in the world.