Modi’s demonetisation a colossal failure, says KTR after reports on cash with public
Hyderabad: TRS (now BRS) working president and Industries Minister KT Rama Rao termed the demonetisation initiated by the Narendra Modi government on November 8 of 2016, a colossal failure that crippled the growing Indian economy. He demanded that Modi apologise to the people of the nation for this massive policy failure and take urgent measures […]
Hyderabad: TRS (now BRS) working president and Industries Minister KT Rama Rao termed the demonetisation initiated by the Narendra Modi government on November 8 of 2016, a colossal failure that crippled the growing Indian economy. He demanded that Modi apologise to the people of the nation for this massive policy failure and take urgent measures to bring the economy back on track.
On the sixth anniversary of demonetisation, the Minister recounted the horrors of demonetisation and the deep scars it left on the Indian economy. “What a colossal failure this demonetisation was and let’s not forget how it crippled the growing Indian economy. This half-baked idea led to eight consecutive quarters of slowdown, subsequently landing in lockdown in 2020 serving a body blow to the vibrant economy,” he said.
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In a statement issued on Monday, Rama Rao pointed out that six years after that hasty decision to scrap all high-value currency in circulation, the amount of currency with public has hit an all-time high of Rs 30.88 lakh crore. “This is proof of how spectacularly demonetisation has failed,” he added.
He said none of the ‘benefits’ promised by Modi and his BJP government upon implementing demonitisation could not be achieved. Wild claims of the Prime Minister that demonetisation would reduce cash in circulation, end terrorism, reduce black money, reduce counterfeit currency and bring in a cashless economy all had been proved wrong, he reminded.
The cash in circulation has increased by 72 per cent or Rs 12.91 lakh crore from Rs 17.97 lakh crore on November 4, 2016. All the claims were proved wrong and there is an alarming increase in counterfeit currency. Referring to the Prime Minister’s claim that he could be burnt alive in case the desired benefits were not achieved within 50 days, the TRS (BRS) working president stated that instead, the lives and livelihoods of crores of poor and middle income group Indians were burned down by demonetisation.
Rama Rao said the demonetisation had several disastrous effects on the Indian economy including 50 lakh people losing their jobs during 2016-19. The MSME sector suffered the most as these small and medium enterprises depended a lot on cash and the sudden demonetisation resulted in closure of lakhs of MSMEs across the country. The policy failures of the Centre including demonetisation, resulted in record unemployment, untamed inflation and an economy in tatters, he said.
“This ill conceived, and poorly implemented measure has dealt a massive blow to a vibrant economy of our country. Several studies by both government and private institutions in the past six years prove beyond doubt that demonetisation has failed on all accounts,” the Minister added. All these are proofs of how Narendra Modi’s government is one of the worst performing union Governments in the history of independent India, he added.
What a colossal failure this Demonetisation was & let’s not forget how it crippled the growing Indian economy
This half-baked idea led to 8 consecutive quarters of slowdown, subsequently landing in Lockdown in 2020 serving a body blow to the vibrant economy https://t.co/8fW8f1pjoN
— KTR (@KTRTRS) November 7, 2022
