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Demonetisation and the shift to Goods and Services Tax will “simplify the system and bring down corruption,” and, thereby, lead to long-term benefits, said Nitin Gadkari, Union Minister for Shipping, Road Transport and Highways.
“We are marching towards a cashless economy with the latest technology. The system is changing, the economic approach is changing and, in a few years, the change will happen even at the grassroots level,” he said.
Even now, 10 per cent of toll collections, he said, are in digital mode and in three months this will increase to 50 per cent.
In a pre-Budget interaction with industrialists organised by BusinessLine and the Confederation of Indian Industry, he said the slowdown in economic growth following demonetisation is “transitory”.“Demonetisation is essential”, but in the preliminary stage people did face problems. However, “the gravity of the problem is coming down,” Gadkari said.
He expects India to sustain its position as the fastest-growing economy. The situation is improving “day by day and within two months we will achieve normal levels,” he asserted.
GST is a key issue for States and the Centre, and “on April 1 the Centre will implement” the new tax regime, he assured. Discussions are on with the States to resolve any issues, the Minister said.
Jobs, investments The focus of the Centre’s policy is on job generation with increased industrial investments and the “basic spirit is also to enhance rural economy, agriculture and infrastructure development, including power, irrigation and R&D in the primary sector.”
The emphasis is also on infrastructure growth spanning roads, inland water-ways, power and ports.
R Srinivasan, Editor, BusinessLine , said the newspaper acts as an intermediary between industry and policy-makers and creates a platform for discussion and debate ahead of the Budget to be presented on February 1. Apart from the challenge of growth, the country, he said, is on the cusp of change with the proposed GST.
Shobana Kamineni, Executive Vice-Chairperson, Apollo Hospitals, and president-designate CII, said the government has to spell out clearly the impact of demonetisation.
The currency shortage has impacted small industries and businesses the most, Kamineni said, adding that the money with the banks has to be used to increase consumption and start the investment cycle.
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