On the first anniversary of demonetisation, economist Prabhat Patnaik speaks about why its stated objectives were not achieved, the role of GST and more.
One year later, the stated objectives of Modi’s shuddhi yagna stand unmet, while India’s poor and most vulnerable continue to bleed. “Demonetisation is not the end but the beginning of a ‘long, deep and constant’ battle against black money and corruption and will benefit the poor and the common […]
Demonetisation crippled an economy that ran on cash; it destroyed the livelihoods of millions of farmers, workers, traders, women and the elderly; and it violated the dignity and liberty of law-abiding citizens.
While the negative impact of demonetisation can still be felt, the gains have been minor and could have been achieved even without the disruptive move.
For most of the past ten years, the economy has been suffering because of the unrelenting regime of very high real rates of interest that the RBI has imposed.
It seems as though the Centre does not know how to tackle the economic slowdown and lack of jobs in the country.
There was a consensus, members said after the meeting, that there is a slowdown, and the Economic Advisory Council to the Prime Minister will work to find its causes.
An RBI survey found that 40.7% of people in metropolitan areas think the economic situation has worsened, up from 25.3% in the same period last year.
“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.
In both old and new sectors of the economy, lay offs and workforce reductions have been common since 2016.
While remaining focused on initiatives to improve ease of doing business and interventions such as demonetisation, the government has lagged behind in building physical and social infrastructure.
Middle-class youth who supported Modi and gave him legitimacy are now seriously doubting his economic policies. That doubt will soon turn into rage.
Jayant Sinha, son of the former finance minister, also wrote a rebuttal to his father’s harsh critique of the government’s economic policies.
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.
Growth slowed to a three-year low of 5.7% in the quarter that ended in June, and finance minister Arun Jaitley has said that the government is looking for ways to speed it up.
The 2007-08 financial crisis affected the world’s advanced economies in profound ways and the ripple effects continue to today.
Sectors such as mining, power generation, infrastructure/construction goods and consumer durables also recorded poor performance.
Vinod Dua discusses the impact of demonetisation in light of SBI’s recent admission that it has led to a slowdown in Indian economy, and Amit Shah’s comment on Gandhi.