Impact of Demonetisation on GDP Growth will be Temporary: CII on Economic Survey

KOCHI:
“CII is in agreement with the Economic Survey that the impact of demonetization on the GDP growth rate will be temporary and that once remonetisation is effected, the growth rate would revert to over 7 per cent,” stated Chandrajit Banerjee, Director General, CII. “The Economic Survey’s estimate of growth at 6.75-7.5 per cent is on expected lines, and CII believes that this will be achieved.”
“As mentioned by the Chief Economic Adviser, Dr Arvind Subramanian, the Survey is a forward-looking, comprehensive and objective analysis, and CII congratulates him on a productive and interesting perspective on the Indian economy”, Banerjee said.
Highlighting the strong macroeconomic fundamentals brought out in the Economic Survey, Banerjee commended the Government for its sound management of the economy during challenging global developments.
On demonetization, the Economic Survey has undertaken a deep analysis on economic impact, costs and benefits, and future economic policy. Banerjee said that “CII concurs that there are significant long term benefits to demonetisation, including enhanced digitalization, lowering of real estate prices, and higher tax revenues. CII has been calling for rapid remonetisation, faster digitalization,
and reducing tax rates and stamp duties as also a universal Goods and Services Tax that would include real estate and land, as mentioned in the Economic Survey.”
Banerjee further added that “CII is hopeful that the Budget to be presented tomorrow would deal with the aspects of creating demand, especially through direct tax interventions on the personal income tax and corporate taxation side.”