Hailing the Indian Government’s move to Demonetize Rs 500 and Rs 1000 and introduce new Rs 500 and Rs 2000 currency notes, US experts have said the success of this radical anti-corruption step would depend on its implementation.
According to Puneet Manchanda, Professor of Marketing at the Ross School of Business, “The positives are that it signals clear intent and action to minimize corruption. The negatives are that it targets low and mid-level corruption, it is less likely that large-level corruption is heavy on cash.”
The Real Estate sectors are likely to be slowed due to lack of liquidity. It is hard to predict the short term effect, but it can only help in the medium term. He said “In order to make this policy maximally effective, the government should continue to roll out other policies to fuel the fight against corruption.”
Vikramaditya Khanna, professor at University of Michigan Law School, said “How effective this measure will be in addressing corruption and unaccounted for money will depend in part on whether the most likely method of evading t are being policed affectively. Time will only tell but it is a bold move to address a problem plaguing India for many years”.
It has been said by many US experts that this move will address many challenges they face such as unaccounted black money, corruption and fake currency. They also continued by saying that the Indian government over the last several months, government did offer opportunities for citizens to declare their wealth, so it was in the making. In the long run this will make it easier and cleaner to do business in India.
In reaction to the Indian government’s step, the Obama administration described this as, “It is an anti-corruption measure taken by the Modi government following a series of steps that the government has taken in the past years in an attempt to reduce counterfeit money or black money,” State Department Deputy Spokesman Mark Toner told reporters.