The union government’s move of demonetisation will certainly bring down interest rates and provide a level playing field to India Inc., Minister of State for Finance Arjun Meghwal said.
Talking to R&M on the sidelines of an Assocham event, Meghwal said, “ The move will make rural economy very strong. Initially there will be some pains for farmers but in long run when black money and other corrupt financial practices like hawala will be finished, clean business will flourish. This will help farmers as their input costs will be reduced and output will be better. That is what we want.”
“When Singapore experimented demonetisation, people there also faced problems initially but see where its economy is today. So I feel demonetisation move will revolutionise the way we look at rural economy today,” he added.
Earlier, addressing the ‘Corporate Governance Summit,’ the Minister said, “It was the demand of corporate sector to provide a level playing field to compete globally as while in the US interest rate is two per cent, in Japan it is 1 one per cent but in India it is 12 per cent.”
Terming corruption as a ‘disease,’ ailing the economy, Meghwal said, “The economy was suffering from a big disease so we had to conduct an operation but now we will see rapid recovery.”
He said that demonetisation has severely impacted the people’s tendency of adhering to means of corruption. “We would not have been able to dent corruption through any other mechanism better than demonetisation.”
He said that government is working towards making government officials more accountable and reduce delay in government action to reduce corruption. “We have started going through pending files in the department, now you will get to see rapid improvement in this regard, I am myself involved in this.”
“The 21st Century will be that of India’s once we remove all the ailments of our economy,” said Meghwal.
Conceding that some people must be facing difficulties due to demonetisation he said that no honest person is facing any problem owing to this move. “We are continuously reviewing the condition both the RBI (Reserve Bank of India) and the Finance Department.”
Highlighting certain positive aspects of demonetisation, the Minister said, “It will bring down tax liability, bring down inflation, foreign direct investment (FDI) will shoot up, private investments will rise, bring down Chinese influence in Indian markets and promote domestic manufacturing and boost Make in India.”
He said that since most monetary transactions will now be recorded, it will be a big achievement of Indian economy.