While the cash crunch and increased prices due to GST have led to a sharp decline in demand, repeated appeals of traders to the Centre have failed to evoke a response.
A recent hike in house rent allowances for government employees, coupled with staggered price hikes by firms adjusting to GST, may have contributed to price rises.
Despite the well-documented adverse effects of demonetisation, Modi government’s continued support for it reflects the arrogance of the behavioural ideology that thrives in its sense of certainty, far removed from the struggles of everyday people.
Small and medium sized businesses across the country report tumbling sales, undermining job creation and damaging sentiment in industries crucial to Modi’s political powerbase.
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The accountant-cum-ideologue is believed to have played a key role in many of Narendra Modi’s economic policies, such as demonetisation.
The companies are among the over two lakh struck off from the Register of Companies by the government last month.
Vinod Dua discusses Arun Shourie’s comments on demonetisation and why the Taj Mahal was dropped from the tourism booklet issued by the UP government.
Solutions involve either an immediate fiscal or monetary stabilisation policy, or pushing through further supply-side structural reforms.
“Policies that ought to be implemented, and ought to implemented well, like GST, are being completely fumbled,” Shourie also said in an interview to NDTV.
The 5.7% figure, based largely on data from the corporate sector, does not capture the almost one-third of the economy hit by demonetisation and GST.
In an interview to The Wire, the BJP leader defends his criticism of Arun Jaitley’s handling of the economy and explains why the government’s policies from Kashmir to Pakistan are wrong.
In trying to appease its constituents, the RSS has not only insulated Modi from economic accountability but has also absorbed opposition criticisms against the government.
Shatrughan Sinha, a BJP MP, came out in support of his party colleague after Yashwant Sinha, a former finance minister, critcised Narendra Modi and Arun Jaitley for their handling of the economy.
Many BJP leaders are attacking the finance minister every day, but there is a convenient silence around the prime minister’s role in the economic decisions that brought us here.
With the ripples of demonetisation and a poorly-designed GST spreading economic distress, voters will assess the promise of Narendra Modi’s ‘New India’ in due course.
The cashless future that demonetisation promised never came, and many in rural Marathwada scoff at the idea.
Opposition parties and leaders may or may not be able to cobble together a coherent counter-narrative, but citizens are beginning to take note of the abuse of public confidence and poll promises.
Vinod Dua discusses why Arun Jaitley had to finally admit that the economy has slowed down and why gold imports have tripled compared to last year.
To restore confidence, better governance, rather than any additional fiscal push, is the need of the hour.
India’s crowded digital payments market is expected to grow ten-fold to $500 billion by 2020.
More than a fifth of large companies did not earn enough to pay interest on their loans and the pace of new loans fell to the lowest in more than six decades.
Congress vice president Rahul Gandhi accused Prime Minister Narendra Modi of causing “tremendous damage” to India’s economy.
Vinod Dua discusses why fuel prices keep rising despite the fall in crude oil prices globally, and state of the Indian economy post demonetisation.
Three almost simultaneous developments, each of which would normally have dented the government’s image in only minor ways, show how Modi’s image is beginning to lose its shine.
It’s not easy to defend a failing flagship policy, especially when the central premise is shaky. When the foundation is built on wishful thinking, the supporting ‘evidence’ is bound to stray into fiction too.
The process is “going on in full swing” with most RBI offices working in double shifts and with the help of high-end verification machines, the central bank said.
Demonetisation as a means of tackling the black economy was destined to fail. What’s worse is that its ripple effects are having severe adverse effects on India’s economy.
Year-to-year growth of tax payers in 2016-17 was 26% (with demonetisation), which is less than 27.6% during 2015-16 (without demonetisation).
Ministers were shuttled in and out, supposedly on the basis of performance. But who will take responsibility for the structural slowing down of India’s economy, poor employment generation and agriculture distress?
The price of demonetisation’s “success” is now clear – slowing economic growth. What makes matters worse is that India has made very little headway in solving its twin balance sheet problem.
Former RBI head says he warned of the potential pitfalls if preparation was not adequate, concludes that demonetisation has not been an “economic success”.
Given that Indians belong to varied socioeconomic background, there should be flexibility in financial schemes designed for different segments of the unbanked population.
Unlike earlier social media campaigns, the current effort to counter the negative perception generated by the RBI’s own data has seen the deployment of cabinet ministers too.
Vinod Dua discusses the latest RBI data on demonetisation and appeals to the prime minister to apologise to the public.
Economist Arun Kumar explains how demonetisation failed to tackle black money, but had a severely negative effect on the unorganised sector and the white (formal) economy.
Analysts point out that slowdown from last quarter has intensified due to the combination of long-term slowdown and temporary shock factors like demonetisation and GST.
Narendra Modi has learnt never to engage with his opponents; he sets the agenda and a hapless opposition and media try to keep up.
Nine months after Prime Minister Narendra Modi announced the demonetisation Rs 500 and Rs 1000 notes, it is clear that his government has not had one single, consistent reason for conducting the notebandi exercise.
Look at the image carefully. The face of the man tells us countless stories of hardships suffered and misfortunes borne because of demonetisation. It is another matter that those who can and should ease his pain never even registered the photo in the first place.