The Chairman of the Godrej group also welcomed the step saying it would help combat black money and reduce corruption, while having a positive result on the economic front.
"As far as the effect on the economy is concerned, it will have a considerable negative effect in the first few days after the policy was announced in November. But since then the situation has improved quite considerably and we are seeing a strong pick up in demand of many of our products now," Godrej told PTI.
He further said there is a fair amount of cash injected into the economy and more is being injected regularly. "So I expect a very quick tick up on the economic front also."
When asked whether demonetisation has hit rural sales, which was expecting a good season riding on good monsoon this year, Godrej said, "Of course, it would dampen the sales but it's catching up very soon. Whatever the stocks were reduced at retailer's end will be replenished very soon. December would be a good month."
Disagreeing with the opponents of demonetisation, he said: "A lot of the criticism to my mind is political criticism because the politicians have been hurt."
"The government should talk to state governments and resolve the issues to implement it. The industry is waiting for it," Godrej said.
Yesterday, the Centre and states again failed to sort out contentious issue of dual control of assesses and the Goods and Services Tax (GST) rollout from April 1 next year is now looking virtually impossible.
The 6th meeting of GST Council was slated to decide on dual control of assesses but the two-day meeting was curtailed to half and even yesterday that issue couldn't be discussed because all the time was lost in going clause by clause of the voluminous draft legislations.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Follow NDTV for latest election news and live coverage of assembly elections 2019 in Maharashtra and Haryana.
Subscribe to our YouTube channel, like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.