BJP President Amit Shah said Modi government does not link policy decisions with vote bank
Asking the business community to "encash" the "Brand India" built by the government globally, BJP chief Amit Shah today said that demonetisation was an example of the tough decisions the government had taken to boost the economy, news agency PTI reported.
Speaking at an event of industry body FICCI, the BJP president said, "I definitely believe that the formal economy has increased due to demonetisation. Money lying at various places is now part of the economy."
He added that the Modi government does not link policy decisions with vote bank.
Mr Shah said the number of total direct taxpayers had doubled in the last three years from 3.7 crore to 6.4 crore and opening of 30 crore new bank accounts expanded the formal economy and linked everybody with it.
Prime Minister Narendra Modi's abrupt move to scrap 500 and 1,000 rupee notes last year in November as a bid to curb illicit wealth or "black money" has faced increasing criticism that peaked last month after the Reserve Bank of India said 99 per cent of the banned cash had found its way back to the banks.
The BJP which campaigned heavily on the move billed as a bold one against corruption, won a thumping mandate in state elections this year. Economists have said, though the long term effects of the notes ban may be positive, in the short term demonetisation has dented India's economic outlook.
Hard-selling the gains, Mr Shah said the Modi government was focusing on long-term goals rather than short-term gains. Industrial sector should use this opportunity to expand globally, he said, mentioning African countries as having immense investment potential.