Demonetisation: Here is what worries Anand Mahindra

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New Delhi | November 21, 2016 5:29 PM

Anand Mahindra has said that demonetisation is a very bold move which everyone should respect.

Anand MahindraMany other business leaders have come forward and supported Prime Minister Narendra Modi for taking such a bold initiative.

Anand Mahindra, chairman and managing director of Mahindra Group has said that demonetisation is a very bold move which everyone should respect. Speaking at the India Economic Conclave on Friday, Mahindra said that job creation remains one of the key concerns post demonetisation. In the conclave, which was aired by ET Now, Mahindra said that he doesn’t think India needs to worry about protectionist policies across the world. Speaking on the victory of Donald Trump in the recently concluded US elections, Mahindra said that the US President-elect should keep a long-term positive trade view with India. “Don’t think Donald Trump wants to isolate US markets from global trading,” Mahindra added. In the discussion panel with Finance Minister Arun Jaitley and GE’s CEO Jeffrey Immelt, Mahindra said, “Nature of manufacturing is changing in India at present.”

In an unprecedented crackdown against black money, Prime Minister Narendra Modi had on November 8 announced that all existing Rs 500 and Rs 1000 notes will be rendered illegal. In a tweet Mahindra had said, “Urgent message to anyone who robbed a bank tonight: You just got robbed.” In a separate tweet few days later Mahindra said, “Demonetization, apart from attacking black money, is a significant move against counterfeiting & terror financing. It deserves citizen support.”

Many other business leaders have come forward and supported Prime Minister Narendra Modi for taking such a bold initiative. Rana Kapoor, CEO and MD of Yes Bank, said, “In a single master stroke, the Government has attempted to tackle all 3 malaises currently plaguing the economy – a parallel economy, counterfeit currency in circulation and terror financing.” “In addition, the Indian economy has been provided a new lease of life that can be seen as a ‘reset’ – with huge positive implications for liquidity, inflation, fiscal and external deficit in the short term. Over the next 2-3 years, improvement in India’s position on transparency and corruption in the global league will further add to its investor appeal. With GST on anvil, India is now on the cusp of higher growth in the medium term – to be steered by the organized sectors including MSME’s and the revival of the private sector capex cycle,” added Kapoor.

“This is the biggest surgical strike on the menace of cash ever heard of anywhere in the world. This is a historic policy change and will do down in democratic India’s history as more impactful than the economic reforms of 1990s. Our kids will read about this in their history and economics books. Within a 50 day period a billion Indians will change their payments behaviour – we will move from cash only to a cash-free economy. This a strong step taken by the Modi government and will benefit the growth of digital payments and digital banking in India. We (MobiKwik) are excited to be a part of this historic moment.” said Bipin Preet Singh, CEO of MobiKwik.

Ever since demonetisation move was announced by PM Modi, there have been protests by Opposition parties. Parliament witnessed upfroar from opposition benches leading to adjournments in both the Lok Sabha and Rajya Sabha.

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