Post-demonetisation, normalcy will return in 2-3 months: Gadkari

India is going through a transition period post-demonetisation and normalcy will be restored in two-three month’s time, Minister for Road, Transport and Highways Minister Nitin Gadkari said.

“Demonetisation was essential, though it is a tough one. But the gravity of problem has reduced. There are lot of positive signs,” Mr. Gadkari said. “Within two-three months the situation will normalise,” he said at the pre-budget conclave organised by The Hindu Business Line and Confederation of Indian Industry (CII).

“We are marching towards cashless economy and converting with the latest technology. Even now 10 per cent of toll collection are digital and in next three months this will go up to 50 per cent,” he said.

Banks are flush with deposits after the demonetisation, Mr. Gadkari said. “A reduction in interest rates would help everyone and in the coming months thrust would be given to lending at low interest rates.”

To generate more employment potential, the Centre came out with ‘Housing for all 2022 mission’ and also announced interest incentives to boost low-cost housing.

The Centre accorded highest priority for rural infrastructure and was working ways to increasing growth rate in agriculture and rural economy and increasing employment potential, he said. “It is no doubt, India is the fastest growing economy. In the present situation, there are lot of problem faced by industries. This is a transition period. I think within the next two months, it will come to normal level.”

The Centre plans to invest ₹1,00,000 crore on ports modernisation and also for improving road and rail connectivity, he said. The drafts in the ports would be deepened to 18 metres to berth bigger vessels.

On the Goods and Services Tax (GST), Mr. Gadkari said: “It is a most important economic reform, which will bring relief to trade and industry. GST is a transformative initiative. There are challenges, but there are also number of opportunities. It will be implemented from April 1, 2017.”

A policy to ban vehicles that were above 15 years to check raising pollution was on the cards, he said.