Demonetisation is a big positive move for the Indian economy: Amit Kalyani

The recapitalisation of commercial banks was one of the several beneficial byproducts of demonetisation, the Bharat Forge executive director feels.

Terming demonetisation as a big positive move for the Indian economy, Bharat Forge Executive Director Amit Kalyani has said that the step would expand the country's tax net and result in lower interest rates.

"We have to give demonetisation time before it starts giving positive results," Kalyani told Business Standard in Lucknow. Kalyani observed that demonetisation would gradually transform the way people transacted in their daily lives and dealt with cash.

He noted that demonetisation was a prelude and an imperative for the proposed Goods and Services Tax (GST) which is likely to be implemented from the next fiscal.

The recapitalisation of commercial banks was one of the several beneficial byproducts of demonetisation, which would immensely help the Indian economy in long run, he added.

 

He further claimed that demonetisation would boost low cost housing owing to the projected softening of interest rates and availability of credit history of loan seekers due to operational bank accounts.

Kalani was here to participate in the second edition of 'InnoRail India 2016', an exhibition recently organised by the Confederation of Indian Industry (CII) in association with Research Designs & Standards Organisation (RDSO), Ministry of Railways and supported by Lucknow Rail Metro Corporation (LMRC) with Japan as partner country.

Meanwhile, Kalyani pitched for greater investment in enhancing the safety of rail travel in the country. "The private sector should be encouraged to invest in the railways sector," he underlined.

Kalyani said at a time when low cost airlines were giving tough competition to rail travel, the railways infrastructure had miserably failed to keep pace even as he urgently called for framing a long term strategy.

Bharat Forge Limited (BFL) is a Pune based Indian multinational in metal forming. It has transcontinental presence across nine manufacturing locations in automotive, power, oil and gas, construction & mining , rail, marine and aerospace sectors.