Demonetisation is BIG, let’s pay a small price for it: Ravi Ramu in STP Opinion
Ravi Ramu has spent over two decades in companies across genres – from real estate to technology. As a professional, as a citizen he is hailing the move to demonetisation because he believes a shake up is a must to transform a nation marred with black money. No doubt there is going to be some pressure and pain points but he believes, what will emerge (and quickly) is a regime of clean money. Here are his ten reasons for it.
1. Those with Black Money have just lost almost all of it. Thank God and PM Modi for this.
2. Gold automatically becomes the only store of Black Wealth and this will increasingly become more difficult to store as the next port of call for PM Modi could be Bank Lockers and the like!?
3. Real Estate to the extent it depends on ‘cash transactions’ is dead for now. Land will begin to come at rationally lower prices. Home sales from builders who have operated in the past without cash will substantially increase. Thank God and PM Modi again.
4. India’s credit rating will climb as she will be perceived as a ‘reforms’ oriented country as opposed to a regressive paper-tiger one. Other ratings too will climb… The Ease of Doing Business being one of the more important ones.
5. India’s GDP will steadily rise as the Black Money economy is largely snuffed out in the near-term and transactions get recorded in the mainstream economy. The fear of such bold anti-black wealth moves will presumably drive more to the ‘whiter’ way of doing business.
6. Interest rates for the consumer will surely fall… cheaper home loans and car loans and personal loans will fuel consumer spends and a general good time will be had by most Indians.
7. India and Indians will prosper. This is BIG.”