Thursday, August 30, 2018

Demonstration drive whose cost failed to highlight India's 1.5M jobs 'Black Money'

Demonstration drive whose cost failed to highlight India's 1.5M jobs 'Black Money'

Demontization
According to a report by the Reserve Bank of India (RBI), in 2016, India had returned more than 99% of currency declared in the surprise declaration in the country's banks.
Figures suggest Prime Minister Narendra Modi's diplomatic policy, which probably eliminates less than 1% of country's gross domestic product and takes the cost of at least 1.5 million jobs, to the significant boundaries of countless funds from the Indian economy. Failed to finish - An important argument for this step.
Demontization

Modi surprised the Indians in November 2016 when they announced on live television that the notes of all 500 and 1000 rupees, approximately £ 6 and £ 12 would be banned at four hours time.
People were given several weeks to exchange their monstrous currency for new notes in banks. But new notes could not be printed fast enough, and the policy gave birth to a long currency crisis for months, which stood for hours every day to get millions of Indians cashless or a small amount of cash.
Since India's huge informal economy declined, Modi urged the country to give policy time to work for the policy, arguing that the unwanted funds deposited by rich Indians will be removed, the economy will be digitized Will help - the most cash based in the world - and hungry terrorists and criminal gangs of cash
In the annual report of Reserve Bank of India, 99.3% of the money withdrawn from circulation was returned to banks, indicating that there was "black money" less than expected, or plans to loot money were more successful than thought.
Under the previous Congress-led government, Finance Minister Palaniappan Chidambaram said that the country has paid "huge price".
He tweeted, "In terms of development, the Indian economy lost 1.5% of GDP." "He alone was 2.25 lakh crores [2.25 tonnes], more than 100 lost .15 million [150 m] daily wage earners lost their livelihood for several weeks. Thousands of SME units were closed. Millions [hundreds of thousands] jobs were destroyed. "
Digital transactions have increased, but RBI found that the value of banknotes in circulation increased 37.7% last year. The fake people had also moved to revive the small notes and were now able to copy the notes of the new 500 and Rs 2,000 rupees.
Economist and writer Gurcharan Das said that the positive side of the practice was that the money kept at home was injected into the formal banking system.
Das said, "Now all those money can be tracked and it goes to the formal economy and those who have deposited it back are bank accounts and have become future taxpayers."
"This has helped India move faster towards the digital economy. As a result, India will actually abandon the branch phase of banking.
"But it was not the way to do this," he said. "The cost of the people was very high, and we lost about a year of economic development from our estimates. And to solve the problems of India's jobs, you need to increase by around 8% for almost 20 years. "

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