Economist Take on Monumental mismanagement
Under the leadership of former Prime Minister Dr. Manmohan Singh, a renowned economist and a former governor at the Reserve Bank of India (RBI), he unleashed the economic revolution with that landmark budget in 1991 opening up the Indian economy and ushering prosperity for the nation .India benefited the most from globalization. With its slice of global GDP moving up from 3.6% in 1990 to an estimated 7.3% by 2016.our GDP had grown around 3 times during the last 10 years. This was despite having global economic crisis. But we seldom acknowledge this fact. he thinks the country’s gross domestic product (GDP) could fall by about 2 percent in the aftermath of the demonetisation exercise being implemented .Dr. Singh said, to name any country where people have deposited their money in the bank but they are not allowed to withdraw their money,”. When asked about strong words like organised plunder” and “legalised loot”, “Well that is what the common people feel, they feel that way. “he said.
Decline in the GDP, as Singh warned, would mean slow economic activity across sectors including agriculture, manufacturing and services, which are the core areas that contribute to the national income. The problem is when economic activity slows down, it will have a direct impact on millions of jobs, retail consumption, corporate earnings, real estate and construction activity. An economic slowdown would thus impact each one of us, no matter what you do for a living.
And Singh isn’t the only one who have warned about the impact of demonetisation on economy. According to Thomas Rookmaaker, director in Fitch’s Asia-Pacific Sovereigns Group, “the impact on GDP growth is clearly going to be negative in the short run and depends to a large extent on how long the cash crunch is going to take.”
Nobel laureate Amartya Sen said on the decision to demonetise currency was taken hurriedly without thinking about its consequences. “So far economics is concerned; I find no reasoning behind this decision. It will have adverse effects,”
If we are to have prosperity and political freedom, we must also have economic inclusion and a level playing field. Access to education, nutrition, healthcare, finance, and markets for all our citizens is a moral imperative, precisely because it is a precondition for sustainable—and democratic—economic growth.-RaghuramRajan
“In this backdrop, there is a non-trivial risk that a near-term consumption shock could have a more pronounced second order negative impact in this cycle, even with some countercyclical policy response,”
India Has Committed A Massive Theft Of People’s Property’: Steve Forbes On Demonetisation. This bout of Nazi-like eugenics -has the government engaged in something so immoral,”.