Finance Minister Arun Jaitley today said demonetisation may impact growth “for a quarter or so” but this disruption will not last too long and the move along with GST will help create a larger and cleaner economy.
“I have least doubt in my mind that (one year from now) you will have a bigger economy, higher GDP, cleaner GDP. You will have a higher tax base and more money in banks, and probably interest rates will be more reasonable. Therefore, all these collectively could contribute a lot as far as GDP is concerned,” he said at the HT Leadership Summit.
Both the economy and social system will see a major transformation after the implementation of the Goods and Services Tax (GST) post demonetisation.
“I personally believe that once the remonetisation process is complete and the GST is implemented, it’s going to hugely impact India’s businesses and also the Indian way of life.
“You will have more of digitised expenditures, you will have a taxation system far more efficient, which is extremely difficult to evade, where each limb of the transaction is being captured,” he said.
