Industry organisation CII on Wednesday said the demonetisation of Rs 500 and Rs 1, 000 currency notes will have a positive impact on the economy, as it will help tackle corruption that has taken roots over the last several decades.
"The Confederation of Indian Industry (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, " the industry body said in a statement.
The business body pointed out that the positive impacts of the decision to invalidate Rs 500 and Rs 1, 000 notes as legal tenders will be felt in addressing the issues of terrorism, counterfeit currency and arms smuggling, as mentioned by the Prime Minister.
On Tuesday evening, Prime Minister Narendra Modi announced that Rs 500 and Rs 1, 000 denomination currency notes will cease to be legal tenders from the midnight of November 8 as part of a string of measures to fight black money.
According to Naushad Forbes, President of the CII, the Prime Minister's epochal move to stamp out black money means a definitive and impactful end to the parallel economy and to promote wider use of cashless transactions.
The Prime Minister's address to the nation on demonetising Rs 500 and Rs 1, 000 currency notes sends out the strong message that corruption and underground transactions will no longer be tolerated, said Forbes.
"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. "
Congratulating the Prime Minister on the reformist measure, CII Director General Chandrajit Banerjee said: "It truly proves to the citizens and the world that India can take strong economic measures when required, and underscores the will of the government to undertake big bang reforms. "
"We are confident that Prime Minister Modi will continue to take tough steps with huge macro impact on the economy in the future, " Banerjee said.
Banerjee added that the CII believes that the disruptions and hardships that are being feared are only transient and only for the next couple of days, and the whole country should welcome this move in the interest of the larger good.
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