BENGALURU: “Problems that people are facing due to demonetisation, is one of the biggest challenges Indian democracy is facing today,” said Paranjoy Guha Thakurta, Editor, Economic and Political Weekly
He was speaking at a seminar organised by Communist Party of India on ‘Economic, the Political and Social impact of Demonetisation’ held at Gandhi Bhavan, here on January 26, 2017.
He termed demonetisation as a major disruption to the growth of Indian economy which has mostly effected the financially weaker section of the country.
He expressed surprise that in-spite of so many hardships underwent by people there was no voice against demonetisation among the masses. He blamed the government for its poor, ill-prepared execution and handling of the issue. “All India manufacturers association are also claiming that there is a loss of job, which has come down to 33%. The textile industry, car manufacturers are also claiming that the production sale has come down,” Paranjoy added.
Paranjoy said that demonetisation is an old scheme, but it is given a new name. On August 15, 2014, Modi came up with Jan Dhan Yojana, roughly 10crore Jan Dhan Yojana account has been opened, but more than 9crore account had 0 balance. 90% of the account had 0 balance in 2014. By the end of 2016, roughly 25crore accounts were opened, roughly 5crore account have 0 balance.
He also opined that demonetisation does not serve any of its purposes as the government has been claiming. It would have disrupted the smooth functioning of the country.
“The December 31, 2016, speech by Modi was on a mini budget and he spoke about development and job opportunities for the youth but he is going in the opposite direction,” he said.
H.V.Rai, President of Karnataka Regional Bank Association, said that demonetisation has not only affected the agricultural growth in the country but also has affected agricultural production. GDP will soon be dropped by at least 2%, he added.