Indian economy yet to recover from demonetisation shock: Manmohan Singh

Needed to shake system, says Arun Jaitley on demonetisation anniversary

Needed to shake system, says Arun Jaitley on demonetisation anniversary

On the second anniversary of demonetisation, former prime minister Manmohan Singh Thursday said the scars and wounds from 2016 are only getting more visible with time, adding that the consequences of the note ban are still unraveling.

The chief minister said she had been describing it as a "dark day" since demonetisation was announced by Prime Minister Narendra Modi in 2016.

Mumbai: On the second anniversary of demonetisation, Finance Minister Arun Jaitley said the decision never aimed to confiscate currency but to get it into the formal economy and make the holders pay tax. "Notebandi impacted every single person, regardless of age, gender, religion, occupation or creed". Speaking on the criticism of demonetisation that nearly the entire cash money got stashed in banks, Jaitley said confiscation of currency notes was not the sole aim of the demonetisation; getting it into the formal economy and making the holders pay tax was the broader objective. Small and medium businesses that are the cornerstone of India's economy are yet to recover from the demonetisation shock.

He added, "It is often said that time is a great healer".

Singh, who had termed the decision a loot, said it had a direct impact on employment as the economy continues to struggle to create enough new jobs for the youth.

The prime minister stood up two years ago on November 8 and addressed the nation, demonetising nearly Rs 16.99 lakh crore in circulation, Tewari said. "With a depreciating currency and rising global oil prices, macro-economic headwinds are also starting to blow now", he said.

Singh said, "I urge the government to restore certainty and visibility in economic policies... Today is a day to remember how economic misadventures can roil the nation for a long and understand that economic policymaking should be handled with thought and care".