Demonetisation; Victory of crony capitalism

Shahina Usman

Demonetisation is not a new phenomen to Indian Economy. India has gone through demonetisation in the year 1946 in pre Independence scenario and in 1978 by then ruling janata Dal. Two years ago a disaster struck in Indian economy and in all of India’s Economic History its hard to find anything as indefensible as demonetisation. Critics evaluates this as the biggest money laundering scheme which not only indulged economic failure but also moral failure combined with a political Agenda which once again created social inequlity.

Its not a new notion that the Prime Minister Narendra modi’s note ban Singularly failed to meet any of its objective, but the two years of monumental disaster questions our actions on the issue. The move by the government was an effort to handle the threat of illegal money,corruption, terror funding and counterfeit currency,but none of them were addressed. Data released by RBI in its Annual Report shows that the post demonetisation effects that 99.3% of the currency in circulation or 15.31 lakh crore came back in to the system which shows that people had found new ways of turning black money in to white and subsequently deposit it in the banks.

The loopholes of demonetisation has been in critical discussion for the last two years and its high time to realize the promises made were utterly unrealistic.The DeModrive made the country poorer by 2.25 lakh crore,showing off nearly 1.5% of the GDP.Over 100 lives were lost ,10 crore daily wage earners lost their livelihood for several weeks and thousand of small scale units were shutdown.

The Fiscal figures of the country continues to be in grim in contrary to the budgeted expenditure. Economist like prabhat patniak points out generally those engaged in the informal sector are among the poorest in the country and there is a huge gap between them and those engaged outside of it. The poorest has really suffered and a huge blow for them.

Demonetisation has adversily affected the growth in clients,loans disbursed and repayment rates.The introduction of GST immediately after the demonetisation shows that Narendra modi was in such a hurry to show case and to say aloud that he is emerging as a game changer in the Indian economy rather than appropriate development. The immediate terrorist attacks within a month in assam in 19 th November and another big attack on 29 th November in Nagrota showed that it had no impact on Terror funding. Then they changed the agenda and claimed for a cashless Economy. Thousands of people were finding difficult to fill their stomach and still continues.

The most sensitive part is of the deaths of people and they are not going to get back in to life. The question is what the government gained out of these? Is this just a part of the propaganda of sangh parivar again to raise the idea that the state is just a metaphysical entity? The people of India who holds the democratic values are clearly aware of your intention to destroy and weaken the informal sector. Its just your daydream of an India with corporate politics.

(Shahina is currently pursuing MA Applied psychology, Jamia Millia Islamia, New Delhi)