Nov 29, 2016 02:40 PM IST | Source: CNBC-TV18

Demonetisation: See short-term impact on tractor sales; focus on mfg needed: M&M

What is being done is right, and needs to be done but it is not enough and a lot more needs to be done if India has to become a manufacturing nation, says Pawan Goenka, MD of Mahindra and Mahindra.

"Demonetisation a move in the right direction," says Pawan Goenka, MD of Mahindra and Mahindra in an interview to CNBC-TV18's Priya Sheth, adding that more needs to be done to truly make India a manufacturing nation.

All the steps taken by the government so far, like ease of doing business, trying to attract investment, getting infrastructure right – all of these are important pieces of the puzzle but so far it has not made a huge difference for our industries, says Goenka. The impact of all these initiatives has not been as envisaged maybe because of overall economic conditions like global slowdown etc., he adds.

I just feel that what is being done is right, and needs to be done but it is not enough and a lot more needs to be done if India has to become a manufacturing nation, says Goenka.

However, in the short-term demonetisation will have a negative impact on farm income and in turn on tractor sales, says Goenka, adding that one is not sure how short this short-term will be.

The most important thing from farmers’ point of view is that Rabi crop does not get affected, although it is a bit delayed. Beyond that he does not think demonetisation will have an impact on farm income because the system will likely correct itself.

So, the concern on impact due to demonetisation is for the next four months, says Goenka.

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