BackMamata Banerjee slams demonetisation again, cites GDP numbers
Mamata Banerjee said that March quarter growth was almost two percentage points lower than that of one year ago, and that demonetisation had led to job losses
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Kolkata: West Bengal chief minister Mamata Banerjee, who has led a spirited charge against demonetization, said on Thursday that her apprehensions have come true with the sharp drop in economic activity.
Official figures released on Wednesday showed India’s economy grew 6.1% in the March quarter, down from 7% in the preceding quarter, a development widely-attributed to the disruption caused by the withdrawal of high-value currency notes on 8 November 2016.
Within hours of the announcement in November, Banerjee had slammed the move, saying that it would disrupt livelihoods. As people queued up outside banks to exchange or deposit invalidated notes, she tried to bring together regional parties to oppose the note ban.
In a Facebook post, Banerjee said that March quarter GDP growth was almost two percentage points lower than the corresponding quarter of the previous year, and that demonetisation led to “rampant" job losses in the farm and unorganized sectors. She asked, “What do the people who pushed the country to this crisis have to say now?"
Most consumption-oriented companies were impacted by demonetisation. ITC Ltd, which produces cigarettes and consumer goods, last week said the impact of demonetisation was intense in the December quarter, but has since started to wear off.
Banerjee, however, said the situation has not changed at all in the unorganized sector. West Bengal is among the worst-affected states because according to central government data, 43.8% of its workforce is casual labor.
“Politically, Banerjee had no alternative to opposing demonetisation," said a close aide, who asked not to be named. She had expected it to help her leapfrog into central politics, but failed to assess whether the move had popular support, the aide added.
Banerjee’s revived rhetoric against demonetisation comes at a time when she is again trying to rally support from regional parties ahead of the presidential election to oppose the Bharatiya Janata Party (BJP).
She has already held two meetings with the top leadership of the Congress party in New Delhi, and has said that she will be part of a united front against the BJP if the parties couldn’t reach a consensus on the presidential candidate.
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