Abolition of ₹ 500 & ₹ 1,000 currency notes is a great move for the country! And very courageous, considering that businessmen & traders have been a traditional vote bank for BJP. No other politician would have dared this. It is a good attempt to create level playing field for trade & industry.
Honest businessmen who pay all taxes like excise, VAT, Service Tax etc., find it difficult to sell at 15/25% higher costs compared to their tax evading competitors. Therefore there was an unequal playing field. This created a huge barrier for the growth of honest businesses. Hope that many of such measure to come-in will create a level playing field.
Generation of black money begins with evasion of Excise, VAT, Service Tax, Import Duties, etc. And all this is happening in high denomination notes. WITH ONE STROKE, Modi has flushed it out to a good extent. But the deterrent effect will increase if he enacts laws to make it a very serious criminal offence.
Like the Surgical Strike, this operation had to be kept a secret, surprise move to really keep black money hoarders napping. Modi ji managed to keep it a surprise.
The real loophole is that very big black money accumulators (real big fishes) convert it to GOLD/LAND/REAL ESTATE/LOANS or send it out of the country through HAWALA.
Nevertheless, the currency in circulation was also humongous at nearly ₹ 15 Lakh Crore (nearly 2,300 crore notes). That’s almost 11% of India’s GDP, just to give you an idea!
This operation was like sudden Chemo therapy given to the Cancer of black money.
At MasterClass™ Strategic Execution Consulting, our mission is NATION BUILDING by helping tens of thousands of companies to scale up to the next level. We have repeatedly told our clients that the only way to grow business substantially is to build a business on the foundations of honesty & keeping all transactions clean. We have also told them repeatedly that by paying more income tax, the size of the balance sheet will keep increasing year after year, which in turn will allow them to grow more when bigger opportunities come their way.
Jaago, Mohan Pyare, Jaago!
All in all, a Master Stroke by Modi ji.
– Ambrish Chheda 🇮🇳