Former PM Manmohan Singh takes on Modi govt on demonetisation's 2nd anniversary

The former PM further claimed that the scars and wounds caused by demonetization are getting more visible with time. “It is often said that time is a great healer. But unfortunately, in the case of demonetisation, the scars and wounds of demonetisation are only getting more visible with time”.

New Delhi: As Prime Minister Narendra Modi government’s demonetization announcement completes two years on Thursday, former PM Manmohan Singh on took on the government and called it a “Havoc that unleashed the Indian Economy and society”.In a statement released by Manmohan Singh, he said “Today marks the second anniversary of the ill-fated and ill-thought demonetisation exercise that the Narendra Modi government undertook in 2016”. “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 said. The former PM further claimed that the scars and wounds caused by demonetization are getting more visible with time. “It is often said that time is a great healer. But unfortunately, in the case of demonetisation, 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 unraveling” he stated. He further asserted that small and medium businesses that are the cornerstone of India’s economy are yet to recover from the demonetisation shock. “This has had a direct impact on employment as the economy continues to struggle to create enough new jobs for our 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. We are yet to understand and experience the full impact of the demonetisation exercise. With a depreciating currency and rising global oil prices, macro-economic headwinds are also starting to blow now” he added. He added saying that, “It is therefore prudent to not resort to further unorthodox, short-term economic measures that can cause any more uncertainty in the economy and financial markets”. He further urged the government to restore certainty and visibility in economic policies. “I urge 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”.