In his article, “The great reset, a year later” (November 9), the writer has attempted to prove that demonetisation is not a Kafkaesque nightmare that is largely an attempt to spruce up the Indian economy by eliminating corruption and black money. He gracefully accepts it has been an ill-executed exercise. Therefore, the unanswered question is whether the government has been successful in eliminating corruption and black money. Why is the government still struggling to bring back black money “stashed in foreign banks”? Will the government ensure that the digital money transactions are foolproof? Is it a fact that only a fraction of society is ready to travel on the cashless highway? Finally, will there be an economic recovery?
C. Rajasekaran,
Kumbakonam, Tamil Nadu
Contrary to all assertions, it is accepted even by the government that demonetisation did not ensure what was hoped. That the economy took a knock has been conceded. The whole exercise behind demonetising high denomination currency was ill-planned and poorly executed.
What happened on the ground was radically different. The poor and the elderly like me were left stranded and compelled to wait in long queues. This trauma was all the more tragic as they only wished to withdraw their money which surely was not illegal. During this period we never saw the influential and the well-heeled standing in any queue anywhere as they were well taken care for. The sudden withdrawal of ₹500 and ₹1,000 notes not only battered India’s currency-reliant poor and middle classes but also left the adept tax evaders unscathed. Paul Krugman, economist and Nobel laureate, said, in a newspaper interview, that the gains from demonetisation were “uncertain” and that the government move was “highly disruptive”. This was amply proved with frequent tweaking of the terms of demonetisation by as many as 60 notifications. The claim that stone throwing in Kashmir has come down due to demonetisation is beside the point.
H.N. Ramakrishna,
Bengaluru
No expertise in economics is required to assess the impact of demonetisation, and now the GST, on the Indian economy. Demonetisation helped to wipe out black money to a large extent and the GST helped not only to reduce trade barriers across the country but also to put an end to bureaucratic corruption along State borders. Now, whatever tax is collected will go directly to the State exchequer. When a hard decision is taken, there will be temporary setbacks. Wiping out black money and measures against an economy built on speculation are steps in the right direction. GDP growth is not the real measure to assess the health of an economy.
How far the country is able to build an economy in real terms is more important. The great achievements of the present government are a scam-free three years of governance and also the fight against the parallel economy.
Suresh Rangarajan,
Thiruvananthapuram
The assumption that the Micro Units Development and Refinance Agency (MUDRA) formula has not been fulfilled is unacceptable.
The fact is that the MUDRA scheme has made a substantial difference on the ground. Small women entrepreneurs and business units run by women are the largest beneficiaries.
The scheme is also the world’s largest financial inclusion campaign. Moreover, banks have been asked to give reasons for rejection of applications. This being the case, jumping to make a wrong conclusion is unexplainable.
Another fact is that those who run small businesses having to run from pillar to post to avail of loans from banks cannot be discounted.
Shefa Rafi,
Coimbatore
