Has Prime Minister Narendra Modi’s demonetisation drive proved to be a complete failure in dealing with black money? Yes, if this report is to be believed. Until December 30, which was the last day to deposit the old currency notes, the banks have received Rs 14.97 trillion ($220 billion). The numbers could be a huge jolt to the government which had been claiming that Rs 5 trillion of the Rs 15.4 trillion had been rendered worthless by the sudden economic decision.
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As per a Bloomberg report, about Rs 8 trillion in new currency bills have been disbursed by banks. The Modi government had portrayed the demonetisation decision as one of its biggest blow in India’s fight against black money. This move coming just a few months before five key state elections was also aimed at giving the Bharatiya Janata Party a corruption-free clean image.
However, the decision was taken without due preparedness, forcing millions of people to stand in lines across the country. Businesses that were affected in November are yet to recover in full bloom.
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Private indicators have revealed that a slowdown is likely to continue with the economy having been severely impacted by the cash clampdown.
Out in the public, Modi has his supporters as well as critics. People have been standing in lines, but patience is wearing out soon. Opposition parties too stepped up their criticism asking for a probe into the Prime Minister’s demonetisation move.
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Meanwhile, the Narendra Modi government has defended itself saying the pain will be short lived and the move will have a positive impact on the country’s economy in the long run.
