Body Blow to Black Money Economy: CII

“Prime Minister Modi’s epochal move to stamp out black money once and for all means a definitive and impactful end to the parallel economy and wider use of cashless transactions. The Prime Minister’s address to the nation clearly mentions his vision and objectives for introducing the unusual and innovative move of making Rs 500 and Rs 1000 notes not legal tender any more. It sends out the strong message that corruption and underground transactions will no longer be tolerated. Prime Minister’s resolute action infuses huge confidence among honest tax payers, legal industry and the public at large that India means business when it comes to halting corruption and black money,” said Dr Naushad Forbes, President, Confederation of Indian Industry.
He was responding to the bold measure to demonetize Rs 500 and Rs 1000 notes announced yesterday evening during an address to the nation by Prime Minister Narendra Modi.
“Prime Minister Modi has taken a massive and strong measure that will have far-reaching positive implications for the economy. We congratulate the Prime Minister for his very courageous action that broadcasts the powerful signal regarding curtailment of the cash economy. It truly proves to citizens and the world that India can take strong economic measures when required, and underscores the will of the Government to underta
ke big bang reforms. We are confident that Prime Minister Modi will continue to take up difficult moves with huge macro impact on the economy in the future,” said Chandrajit Banerjee, Director General, CII.
The impact of the decision to make Rs 500 and Rs 1000 no longer legal tender will be felt in addressing the issues of terrorism, counterfeit currency, and arms smuggling, as mentioned by Hon’ble Prime Minister. It would have economy-wide positive advantages in tackling the scourge of corruption that has taken hold in the country over the last several decades. Such an initiative was recommended by CII several times in the past.
CII has always supported measures to root out corruption and black money. CII’s code of conduct for ethical business prohibits bribery and money laundering and promotes ethical business dealings and compliance with laws on terrorist financing. In its submissions to the Government, it has suggested measures to address electoral spending, tackle black money and undertake steps to promote cashless transactions.
“CII compliments and felicitates Prime Minister Modi for his action against corruption and black money and strongly supports the Government in its mission of transformation of India. CII believes that the disruptions and hardships that are being feared are only transient and for the next couple of days and the whole country should welcome this move in the interest of the larger good,” said Banerjee.