India's economic growth is stable and robust, says Shaktikanta Das

I expect 7.5%, or perhaps a little higher for the coming financial year, says Das

Shaktikanta Das, secretary in the department of economic affairs, has played a key role in the formulation and monitoring of the country’s economic policies. The principal responsibility of his department is the preparation and presentation of the Union Budget. On a visit to Bhubaneswar, the 1980 batch IAS officer of the Tamil Nadu cadre speaks to Dillip Satapathy about demonetisation, growth and the goods and services tax. Edited excerpts:
 
Has demonetisation affected the economy?
 
India’s economic growth is stable and robust. Contrary to what people were saying, demonetisation has not adversely affected our growth. I am not saying people did not face difficulties, there was hardship in certain sectors and for some people. The third-quarter gross domestic product (GDP) growth figure is estimated at seven per cent and the Central Statistics Office predicts we will close the year at 7.1 per cent. So far as the economy is concerned, things are back on the rails.

 

There is talk of a slowdown...
 
Let us not go by anecdotal evidence. Someone provides an example of 10 factories that are not working, somebody else can provide an example of 20 factories doing well. Let us go by statistics.
 
What is your growth assessment for the coming financial year?
 
I expect 7.5 per cent, or perhaps a little higher.
 
How is revenue collection this year?
 
Very good. We are going to exceed the target.
 
What is the preparedness on GST?
 
Not only the central government but also the state governments are in full preparedness to implement the goods and services tax (GST) from July 1. GST will change the way business is done in India. If you remain outside the GST net, you will become less competitive.

 
Was demonetisation able to curb black money?
 
The government has taken a series of steps to curb black money: the appointment of a Special Investigation Team (SIT); renegotiation of agreements with Switzerland, Mauritius, Cyprus and Singapore; a law against black money held by Indians abroad; and the Income Disclosure Scheme and the Garib Kalyan Yojana. Demonetisation is the biggest attempt to curb black money and we are confident it will have a lasting effect. The biggest thing demonetisation has done is it has eliminated the shadow economy.
 
Is the remonetisation process complete?
 
From March 13 there are no restrictions on withdrawal of cash. There is enough cash available. Maybe there are some isolated problems, but these are being tackled by banks and the RBI. Remonetisation is almost complete.