"India will never be the same again post demonetisation," said OECD Secretary-General Angel Gurria on Tuesday.
At the launch of OECD's Economic Survey of India, Gurria said the note ban will help the country move to a less-cash society, greater financial penetration and better consumer protection.
Coming out in support of the move, he said its impact may be felt on the consumption pattern in one quarter but it it going to "bite" in the medium and long term.
Launching the report, Economic Affairs Secretary Shaktikanta Das said the benefits and outcomes of demonetisation will be evident in the coming quarters. "Remonetisation is now almost complete," he said.
The OECD Survey has pegged India's real GDP growth at 7 per cent in the current fiscal and at 7.3 per cent next fiscal.
The estimate comes just ahead of the CSO's GDP estimate for the fourth quarter that will be released today evening.
Gurria termed India as one of the top reformers amongst G-20 countries, but stressed that the reform momentum must continue for more inclusive growth.
The report also identified priority areas for future action, including continuing plans to maintain macroeconomic stability and further reduce poverty, additional comprehensive tax reforms and new efforts to boost productivity and reduce disparities between the country’s various regions.