One of India’s leading business figures, Adi Godrej, Chairman of Godrej Group, on Tuesday said that it’s “impossible to transit to a cashless economy”. “We can make use of cash less prevalent by using other means for transfer of funds but I don’t think cashless economy can be achieved at all in the near or distant future. There is no economy in the world, even the most developed economies are not cashless,” Godrej said in a conversation with NDTV. Godrej’s own business has suffered heavy losses after demonetisation. Godrej Appliances, which is a manufacturer of household products, reported a dip in sales of around 60-70 per cent after centre’s move. However, Godrej said that he is “not very concerned if sufficient cash is made available in the next two to three weeks.”
Suggesting ways to deal with the situation, Godrej said that, “the government can get a lot of notes printed abroad. They should get them printed and bring them to India. There are, I think, six or seven large international suppliers of currencies all over the globe.” Discussing the impact of demonetisation on overall growth, he says there will be a short term impact while there is currency shortage. “Once the currency shortage is taken care of, then I think growth can be restored. In fact, we can make up for it,” he says. However, he added that there can be long damage to the economy if cash is not made available at an early stage. The government has been saying cashless transactions will see a spurt rise once after demonetisation.