Demonetisation is a welcome and vital step for the economy

The recent step by the prime minister to make 500 and 1000 currency notes defunct is revolutionary. This is a clear manifestation of Swachh Bharat. Although it has left law-abiding citizens feeling happy, those who have been conducting their business in a shady manner are in a panic.

This move is the right step to mainstream all economic activity. Traditional business will go into a tizzy for a while. A lot of people may be in a quandary, not necessarily because they are involved in crime, but because we have been conducting nearly 50% of transactions below the tax radar. There are many reasons for this. People had the feeling that the taxes they pay don’t come back to them in the form of benefits of infrastructure, services and others things. So people developed an attitude of “I don’t have to pay taxes”.

But a time has come for this nation to get its act together. Though there will be difficulties, we have to go through this. A bit of difficult surgery is necessary because India’s economy is going to blossom. The monetary systems and investment processes in the world always bypassed India because they were afraid of us — of our corruption, inefficiency, and not completing anything we start.

That image is changing and the money markets are moving towards India now, and you will see things changing rapidly. If this blossoming has to be on a stable footing, it is important that everything is above the ground. If we want the world to engage with us, cleaning up our act on all levels is important.