Demonetisation has proved to be a nightmare for BJP Govt. Last week, Agriculture Department reported that Demonetisation had a bad effect on Agriculture, and now Former Chief Economic Advisor Arvind Subramanian has said that demonetisation was a “massive, draconian, monetary shock.” He also added that it accelerated the decline in economic growth to 6.8%.
All these remarks are Made by Arvind in his upcoming and first book, “ Of Counsel: The Challenges of the Modi-Jaitley Economy.” According to a news report by IANS, Arvind also said that the informal sector paid a heavy cost due to demonetisation. Arvind Subramanian’s book is expected to be released on 5th of December.
Subramanian has written quite extensively about the demonetisation but he has not made a single hint whether this step was taken by Prime Minister with his consent or not. Subramanian has quit his job in June 2018 while the decision of Demonetisation was taken on November of 2016.
Subramanian wrote in his book, “Demonetisation was a massive, draconian, monetary shock: In one fell swoop, 86% of the currency in circulation was withdrawn. The real Gross Domestic Product growth was affected by the demonetisation.”
“Growth had been slowing even before, but after demonetisation, the slide accelerated. In the six quarters before demonetisation, growth averaged 8%, and in the seven quarters after, it averaged about 6.8%.,” Arvind added.
He didn’t only criticise the Demoetisation. Talking about its Pros Arvind Said that demonetisation may have enabled more people to shift from cash transactions to payments through electronic means.