The government made a logistical error in printing Rs 2,000 notes instead of arming the banks with millions of Rs 100 notes by November 8, 2016, according to Homi Ranina, tax expert (pictured). He was speaking at the Taj Mahal Palace and Tower Hotel on 
"Implications of Demonetization” at an event organized jointly by the Rotary Clubs of Bombay Hills South and Golden Hearts on November 24, 2016, a fortnight after Prime Minister Narendra Modi made his now-famous telecast on November 8 that the erstwhile Rs 500 and Rs 1,000 notes would not be legal tender from that date. A write-up giving a gist of the talk was received by Parsiana from Godrej Dotivala, founder and past president of the Club of Bombay Hills South, who organized the event.
Ranina, a Supreme Court advocate, believes that the demonetization of the high value notes was perfectly timed by the government, which is also set to implement the goods and services tax regulations. Calling the move a paradigm shift in the economic direction of the country, he said that the effects of this change would be fairly positive in the medium term as it would bring down inflation and rates of interest and result in surpluses to the government. He estimated that the surplus would be used in the next financial year for funding public sector banks, building infrastructure and strengthening the rural economy and the social sectors of education and health.
Cautioning that there may be a slowdown in the rate of growth during the third and fourth quarters of the current fiscal year, Ranina was optimistic that growth rates would not only stabilize in fiscal year 2017-18, but also show a rising trend. He foresaw a potential lowering of personal income tax rates too. He advised that the government needed to heavily promote the electronic backbone for digital payments that was already in place in the country through point of sale terminals at retail outlets, fuel stations and restaurants. Ranina was confident that these measures would ensure that India moves towards a cashless economy in a seamless manner. The Indian economy is in a reboot mode, he said, and was confident that the country would emerge soon as the third largest economy in the world, after the USA and China.