India’s crackdown on black money will help financial system: EU

Welcoming India’s decision to withdraw high-value banknotes as part of its fight to root out black money, the European Union has said ridding the financial system of “black component” and bringing transparency will strengthen Indian economy and spur growth.

Calling India one of the most attractive investment destinations globally, Vice-President of European Commission Jyrki Katainen also complimented the government for its resolve to roll out the Goods and Services Tax (GST) soon, besides many other reform measures. On a visit here to push for resumption of stalled negotiations on EU-India Broad-based Trade and Investment Agreement (BTIA), he said fight against tax dodgers and those having ill-gotten wealth will pay dividends and strengthen the financial system.

“All the measures which will reduce black economy are always good for people and the financial system,” he told PTI on government’s decision to withdraw Rs 500 and 1,000 notes. Referring to GST, he said it is a “very ambitious” and “very necessary” move to reform the tax structure in India that will further boost confidence of investors in India. The top EU official said investors from European countries are bringing “white clean money” to India and there was a need to resume the talks on BTIA, popularly known as free trade agreement.