India’s former Prime Minister (2004-2014) and former Reserve Bank of India Governor (1982-1985) hit out on the government’s demonetisation move. Addressing the Rajya Sabha yesterday on 24th November in the presence of PM Narendra Modi, Singh termed this step as a ‘monumental management failure’.
Demonetisation has already hit common people hard and more than 65 people have already lost their lives to it. Advocating the same he said that it is important to take note of the grievances of the ordinary people who have suffered as a result of this imposition on the country “overnight” by the Prime Minister and hoped him to take practical and pragmatic decision to lessen the sufferings of poor and common man. He further warned the government that this major move can even bring down the GDP by at least 2%. “My own feeling is that the national income, that is the GDP of the country, can decline by about 2 percentage points as a result of what has been done. This is an under-estimate and not an over-estimate”, he said.
Keeping in mind that Manmohan Singh is an eminent economist who served as the Finance Minister and brought in the biggest ever reform in Indian economy by introducing LPG Policy, it would be definitely be wrong to consider his address as a mere obvious denial by opposition.
Urging the PM Modi to urgently take preventive measures, Manmohan Singh said,” It is not my intention to pick holes what this side or other side does. But I sincerely hope that the PM even in this late hour will help find us practical and pragmatic ways to provide relief to the suffering of the people of this country,” during the debate in Rajya Sabha on the same issue. He also raised the issue in the favour of unorganised sectors, agriculture and small industries who also have been hit hard by the this and said people might lose faith in the currency and banking system as an after effect of this move. “These measures convinced me that the way the scheme has been implemented, it is a monumental management failure. And in fact, it is a case of organised loot and legalised plunder”, he said sharply.