Praising the Centre’s demonetisation move, chairman of Godrej Group Adi Godrej has said that it would be a good for the country in the in the medium to long run, but talking about cashless economy is trying to achieve too much too soon”. He also said that all countries which have a lot of online transactions, use quite a lot of cash. Therefore., to get into cashless economy situation especially in rural India looks difficult.
As per him, while it is good to shift to some other forms of payment, cash will continue be important”. Speaking to the paper he also said that it was very important to make sufficient currency available at an early date.
Godrej in an interview to ‘The Indian Express’, also said that the withdrawal of high-valued notes would be good for the country in the medium to long term. Even while black money may be kept in some other forms, there is a significant amount getting out of circulation. There will be a considerable discouragement to generate further black money.
He added that when Goods and Services Tax is finally introduced, would also “tremendously cut” black money and added that there would be no scope for evading indirect taxes, which is is the major cause for black money. Even direct tax evasion is mostly because of indirect tax evasion, Godrej said. In the short term, he expected problems as the government did not properly estimate on how much business is transacted through cash.