‘Demonetisation to boost transparency of economy’

President Pranab Mukherjee said demonetisation of high value currency notes will immobilise black money and aid the fight against corruption.

Addressing the nation on the eve of Republic day, he said, “Demonetisation, while immobilising black money and fighting corruption, may have led to temporary slowdown of economic activity. As more and more transactions become cashless, it will improve the transparency of the economy.”

Bullish on economy Mukherjee said that the Indian economy is on the path to recovery despite of ‘challenging global economic conditions’.

He said, “In the first half of 2016-17, it grew at a rate of 7.2 per cent – same as that last year – showing sustained recovery. We are firmly on the path of fiscal consolidation and our inflation level is within comfort zone. Though our exports are yet to pick up, we have managed a stable external sector with sizeable foreign exchange reserves.”

Need for electoral reforms He said that imperfections have to be recognised and rectified while commenting on the need for electoral reforms.

The President said, “The time is also ripe for a constructive debate on electoral reforms and a return to the practice of the early decades after independence when elections to Lok Sabha and State assemblies were held simultaneously. It is for the Election Commission to take this exercise forward in consultation with political parties.”

The economy needs to grow in double digits, according to Mukherjee to succeed in the war against poverty.

He said, “Our economy is yet to grow at over 10 per cent for an extended period of time to make a significant dent on poverty. One-fifth of our countrymen still remain below poverty line. Gandhiji’s mission to wipe every tear from every eye still remains unfulfilled.”