Russian international television network (RT) in its report claimed that Modi’s anti-graft drive to prevent corruption and terrorism has spelled disaster. The drive hit after Indians return 99% of banned notes. Indians have deposited nearly all the currency bills voided by the Prime Minister Narendra Modi, denting the central bank’s profit and dealing a blow to his drive to unearth unaccounted wealth.
The TV quoted Bloomberg stating ‘Modi’s biggest move is a total bust. It happened exactly opposite to what had been claimed’. The counterfeit currency that was expected to be exposed, was in fact just less than 0.0007 pc. Another claim of Modi was that demonetization would ‘break the back of terrorism’ by cutting off sources of funding, instead this has been among the bloodiest summers for Indian security forces in Kashmir.
How disruptive was demonetization?
• It may have eliminated over 5 million jobs.
• Growth slowed.
• For weeks hundreds of thousands of small businesses struggled to find working capital.
• Many of them may have gone out of business permanently.
• Agricultural prices crashed.
A raft of economic data since the note ban decision have signaled that $2 trillion economy was hurt by the cash clampdown.