Today is the first anniversary of an unscientific experiment called demonetisation. Yes, some depict demonetisation as one of the bravest steps taken by Prime Minister Modi but scholars called demonetisation unneeded move with magnificent costs and precious little benefits. Former RBI chief Raghuram Rajan too has spoken out against demonetisation.
— Narendra Modi (@narendramodi) November 8, 2017
Prime Minister Narendra Modi highlighting the benefits of the demonetisation posted a video on his twitter handle in which he tried to underline the need and importance of ban of high-value currency.
Why demonetisation was a political move rather than an economic reform?
Economic growth reduced to nearly half the rate (5.9%) by September 2016. It was a political move, not an economic reform as it did definitely give political dividends for Prime Minister Narendra Modi and the BJP. Industry, which accounts for nearly 30% of GDP, has been in the very bad state. PM Modi, undoubtedly sold demonetisation as the war of Indians on the evil called black money.
All cash returned: Demonetisation was a failure
RBI announced that 99 percent of old currency came back (deposited or exchanged for new currency), people have returned almost Rs. 15.28 lakh crore ($242 billion) to the banks. It clearly shows that note ban failed to deliver on its purpose of tracking black money. Hence, Demonetisation was indeed a failure.
Objectives outlined by PM Modi has not been met
Development economist Jean Dreze said that demonetisation in a booming economy is like shooting at the tyres of the racing car. The objectives outlined by PM Modi has definitely not been met. It was a blunder which BJP never gonna accept.
Government claims demonetisation throttled Terrorism
On Tuesday, The National Investigation Agency (NIA) claimed that it had seized nearly Rs 36.5 crore in demonetised notes during its probe into the Kashmir terror funding case.
“We have seized demonetised currency of face value Rs 36,34,78,500 and arrested nine persons in this connection in the Jammu and Kashmir terror funding case.
People still back demonetisation
An online survey conducted by Economictimes.com shows people still back demonetisation and extend their support to the PM.
“In response to the question, ‘Overall, how do you rate demonetisation?’, 38% said it was a success. 30% said it had mixed results. Only 32% said it was a failure.”