India has potential to grow faster and plans are underway to reduce poverty and create jobs in rural areas, Finance Minister Arun Jaitley said on Monday, even as he ruled out the country becoming totally 'cashless' immediately.
"One of the reasons for note ban was tax non-compliant. One of the objectives of the demonetisation was to reduce and eliminate anonymity. I don't see India becoming a cashless system immediately. I see India becoming a less-cash economy," Jaitley told PTI in London.
The finance minister, who is meeting top government officials and business leaders in London, further said the goods and services tax (GST) regime would also make the generation of cash more difficult, besides making the taxation system much more efficient.
He hoped that GST would be implemented by July 1.
On the Centre's efforts to move towards digitalisation and the cashless regime, he said, "Major business, property transactions, salary payments, and school fees will be done through a cashless system. Will it be totally cash-less? I don't see it happening immediately."
Talking about retrospective taxation, the Finance Minister said the government has decided not to resort to such measures and the existing disputes are being sorted out either bilaterally or through the judicial system.
"India still has the potential to grow at a higher rate than today. A series of action is needed to reduce poverty in the rural areas. We have planned several programs for rural India coupled with measures to create jobs," Jaitley said.
"Today, India is one of the most open economies in the world. While the world is turning protectionist, India is opening up more," he added.
On the GST roll-out, the FM said, "The first requirement is the constitutional amendment, the law has been passed unanimously and by September 15, 2017, the curtain will be down. We have resolved most of the critical issues. Legislations have been drafted. Two weeks ago, we approved the first draft. By March first week, the second draft will come up. Parliament will be resuming from march 9."