Taking a dig at Prime Minister Narendra Modi-led central government on the second anniversary of demonetisation of high value notes, former PM Manmohan Singh said the exercise was ill-fated and ill-thought.
In a press statement, Manmohan Singh said that the havoc that it unleashed on the Indian economy and society is now evident to everyone. “Notebandi impacted every single person, regardless of age, gender, religion, occupation or creed,” he added.
He also asserted that the scars and wounds of demonetisation are only getting more visible with time. “Beyond the steep drop in headline GDP growth numbers after demonetisation, the deeper ramifications of notebandi are still unravelling. Small and medium businesses that are the cornerstone of India’s economy are yet to recover from the demonetisation shock,” the former PM noted.
The former Prime Minister also termed the decision a loot and said that it had a direct impact on employment as the economy continues to struggle to create enough new jobs for the youth. “The financial markets are volatile as the liquidity crisis wrought by demonetisation is taking its eventual toll on infrastructure lenders and non-bank financial services firms,” he said.
Manmohan Singh said that the full impact of demonetisation is yet to be understood and experienced. “With a depreciating currency and rising global oil prices, macro-economic headwinds are also starting to blow now,” he said.
He also urged the government to restore certainty and visibility in economic policies. “Today is a day to remember how economic misadventures can roil the nation for a long time and understand that economic policymaking should be handled with thought and care,” he concluded.
Former PM Dr. Manmohan Singh's Press Statement on two years of Demonetisation & the devastating impact it had & continues to have on the Indian economy. #DestructionByDemonetisation pic.twitter.com/4d4JE8bdhY
— Congress (@INCIndia) November 8, 2018
Earlier, on Tuesday, while addressing a press conference in New Delhi, Congress spokesperson Manish Tewari declared that party supporters will hold protests across the country on November 8 to condemn PM Modi’s demonetisation. On behalf of Congress party, he demanded an apology from Prime Minister Narendra Modi to the country.
It is to be noted that PM Modi announced demonetisation during a televised speech delivered at 8:15 pm on November 8, 2016, scrapping existing Rs 500 and Rs 2,000 notes with immediate effect. He had asserted that the objective of the exercise was to curtail black money and reduce the part played by counterfeit currency in funding terrorism and other illegal activities.