Attacking the Narendra Modi government for the 2016 demonetisation, former Prime Minister Manmohan Singh on Thursday urged the Centre to restore certainty and visibility in its economic policies. Mr. Singh also asked the current NDA regime not to indulge in any further unorthodox, short-term economic measures that could cause any more uncertainty in the economy and financial markets.
“Today marks the second anniversary of the ill-fated and ill-thought demonetisation… The havoc that it unleashed on the Indian economy and society is now evident to everyone. Notebandi (demonetisation) impacted every single person, regardless of age, gender, religion, occupation or creed,” Mr. Singh said in a statement.
He also said that even after two years, the economy was yet to “recover from the notebandi shock. It is often said that time is a great healer. But unfortunately, in the case of notebandi, the scars and wounds of demonetisation are only getting more visible with time. Beyond the steep drop in headline GDP growth numbers after demonetisation, the deeper ramifications of notebandi are still unraveling. Small and medium businesses that are the cornerstone of India’s economy are yet to recover from the ban on currency shock.”
In a sudden move that took everyone by surprise, Mr. Modi had on this day in 2016, announced a ban on the currency notes of ₹500 and ₹1,000.