The demonetisation move of the Modi government, initially dubbed as “bold”, “historic” and even “tectonic” has been finally exposed for what it actually was — an unplanned misadventure.
To start with, the RBI data revealed that 99% of the demonetised notes have returned to the system, showing that the corrupt had devised means to convert black money to white using legal means, defeating the first stated purpose of the disruptive move. Or, it means that the amount of black money held in hard cash was very low, contrary to the government’s expectations.
Further, the RBI also saw a spike in the total expenditure incurred on printing bank notes in the period of July 2016-June 2017. The figure quoted was Rs 79.65 billion as opposed to Rs 34.2 billion during 2015-16.
Further, the RBI also saw a spike in the total expenditure incurred on printing bank notes in the period of July 2016-June 2017. The figure quoted was Rs 79.65 billion as opposed to Rs 34.2 billion during 2015-16.
India has neither seen an abatement of terror-related activities and internal security threats from the Naxals, as claimed by the government.
The informal economy was hit so bad, that the World Bank remarked on it. India’s GDP came down to 5.7% in the last quarter, compared to 6.1% in the previous. Had Narendra Modi consulted former Prime Minister Dr. Manmohan Singh, then he would have advised him against the move.
Congress Vice President Rahul Gandhi was one of the first and most vocal critics of demonetisation. He had said that this was a hit delivered to the poor and marginalised. He called it an outright “scam”, and with all figures and data now at our disposal, Mr. Gandhi stands vindicated.
Faced with hard, unforgiving data, the government is now trying to put a positive spin by saying that the other objectives of demonetisation were met. However, it’s rather outlandish claims also stand summarily demolished.