New Delhi: On the second anniversary of demonetisation exercise by the Narendra Modi government, former Prime Minister Dr Manmohan Singh said the scars and wounds inflicted by notebandi are now more visible.
“It is often said that time is a great healer. But unfortunately, in the case of demonetisation, the scars and wounds of demonetisation are only getting more visible with time," Dr Singh said in a statement.
Describing demonetisation as an “ill-fated and ill-thought" exercise, Dr Manmohan Singh said “the havoc that it unleashed on the Indian economy and society is now evident to everyone. Notebandi impacted every single person, regardless of age, gender, religion, occupation or creed."
“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 demonetisation shock. This has had a direct impact on employment as the economy continues to struggle to create enough new jobs for our youth," he said adding that today is a day to remember how “economic misadventures" can roil the nation for a long time.
The former prime minister blamed demonetisation as the reason behind the volatility in financial markets saying the liquidity crisis wrought by demonetisation is taking its eventual toll on infrastructure lenders and non-bank financial services firms.
Urging the government to restore certainty and visibility in economic policies, Dr Manmohan Singh advised that it is prudent to not resort to further unorthodox, short-term economic measures that can cause any more uncertainty in the economy and financial markets.