1. Hold on, Demonetisation ‘dangal’ has just begun

Hold on, Demonetisation ‘dangal’ has just begun

Narendra Modi government's 50-day window to exchange old Rs 500 and Rs 1000 currency notes ends today. But this is not the end of all woes caused by note ban.

By: | New Delhi | Updated: December 30, 2016 10:49 AM
demonetisation, demonetisation dangal, narendra modi, 50 days of demonetisation, note ban, demonetisation deadline, modi, namo, mamo, demonetisation effect, demonetisation impact, dangal, aamir khan, bjp, congress, demonitastion latest update, note ban effect, note ban impact, demonetisation news, note ban effect, note ban latest update, 50 days of note ban, note ban 50 days, modi note, note modi, demonetisation 50 days, indian news, latest news, financial express Prime Minister Narendra Modi announced demonetisation on November 8, 2016. The government provided 50-day window to people to exchange their old Rs 500 and Rs 1000 currency notes. (Image source: narendramodi.in)

Narendra Modi government’s 50-day window to exchange old Rs 500 and Rs 1000 currency notes ends today. If you are honest and still believe that the end of December 30 would lead to a return of pre-November 8, 2016 days, then hold on, brace yourself.

It is now clear that demonetisation is only one of the many steps towards the grand goal Modi government has set for itself. In an interview to India Today on Thursday, PM Modi himself warned, “You must understand we took the decision on demonetisation not for some short-term windfall gain, but for a long-term structural transformation.”

Brimming with confidence after passing the critical 50-days without much “collateral damage”, as the government wants everyone to believe, PM Modi explained the objective of demonetisation with a new perspective — to clean the Indian economy and society of the “menace of black money, purging the distrust, artificial pressures and other ills” that accompany it.

Union Urban Development Minister Venkaiah Naidu took demonetisation objective even a step further on Thursday. He likened demonetisation with a “Swachh (clean) Economy” campaign, on the lines of “Swachh Bharat Abhiyaan” launched by the Modi government in 2014.

“The mandate for the Government was for a Clean India encompassing all aspects of mind, surroundings, economy, governance and public life,” he said at the National Media Centre in New Delhi.

To those exposed to the perils of history, the very idea of a “Swachh Economy” campaign would appear scary — much like Mao’s exploits in China or those of Lenin and Stalin in Russia in the 20th century. Naidu warned,”Government would not rest till the last rupee of black money was accounted for and removed from the system.” PM Modi has said this himself on a number of occasions since November 8. But, should you worry?

Cleansing of Indian economy sounds like “ethnic cleansing” of a different dimension. For 70 years, scores of Indians have championed “jugaad”, “short-cuts” and “tax-theft” in economic life. When the opposition parties say that all people, who were forced to stand in serpentine queues to access their own “hard-earned” money after November 8, were honest, they espouse a monumental lie, that has so far fueled the election economy and, hence, democracy in the country.

Yes, all are not honest, accept it. With demonetisation, Modi government aims to force all citizens to become honest in economic life. When the BJP would start such cleansing campaign from its own house, however, is shrouded in mystery — may be today, may be tomorrow, may be never.

To say that the extent of demonetisation has been massive would be an understatement. “Unprecedented” sounds better as no country has ever tried to demonetise 86% of its total currency notes in circulation in one go. PM Modi acknowledges this. And he said it rightly to India Today, “This decision (demonetisation) is so huge that even our best economists remain confused in their calculations.”

Until today, many people have been eagerly waiting for the end of the 50-day window. But the real challenge would begin from tomorrow as it is highly unlikely that banks would be replenished with the same amount of currency notes as they used to dispense earlier.

The government doesn’t intend to print the same amount of notes as earlier, hence the focus on “less-cash” economy. Printing same amount of money as past would defeat the very purpose for which Modi government took to demonetisation. This leaves cash-dependent citizens, including merchants, consumers and labourers, with only two options — either quickly adopt digital means of payments for their own convenience or perish slowly as offerings in the demonetisation “yajna.”

PM Modi said on Thursday that India stands “on the cusp of actualising its inherent potential as a developed nation”. But no country has become developed without the silent mutiny of the uninitiated. Will the citizens put India first or struggle hard to return to the old ways? History would provide the answer in future. For now, the ‘dangal’ has just begun, days after Bollywood star Aamir Khan struck gold at the Box Office with it.

  1. A
    augustus
    Dec 30, 2016 at 6:21 am
    Partints in the informal economy, the small manufacturers of electrical equipments, wires, switches and plugs, gas stove and kitchen equipments, sewing machines, hand tools, paints and varnishes, ceramic tiles and bathroom accessories, small textile mills, small chemical companies and many such shall fail to differentiate themselves since going forward they shall have to pay full taxes and therefore the selling price shall not be significantly different from those of the bed ones! Which in turn means the bs shall win in this game of consolidation.
    Reply
    1. B
      bmniac
      Dec 30, 2016 at 12:05 pm
      Typical of an economist On the one hand this and on the other hand that. And not coming to any point!
      Reply
      1. D
        Disha Thakur
        Dec 30, 2016 at 6:05 am
        modi's fekuism will never stop, his ego is the reason common people are suffering
        Reply
        1. M
          Muralidhara H
          Dec 30, 2016 at 7:14 am
          14 lac crores old hidden notes now in banks! Simply talk about only 'woes'!! What benefit personally PM is getting with the bold decision. Rubbish article.
          Reply
          1. R
            R N
            Dec 30, 2016 at 9:25 am
            Govt is experimenting the less cash economy model, which may not work. This will slow down the economic activities and many would be rendered jobless. Loss would be tremendous. Russia did demonetise its currecy when their Rouble was equal to 1$, after demonetisation the Rouble tumbled to $1 = 800 Rouble. Hope our Indian Rupee do not loose so much under the pretext of corruption/black money
            Reply
            1. P
              Para Eighteen
              Dec 30, 2016 at 6:32 am
              I think all ' intellectuals' need to go on a long walk. Let us common folk decide what is good for us.
              Reply
              1. P
                prasanna
                Dec 30, 2016 at 6:06 am
                What a pathetic article. What are you trying to say ? Shame on you Rajeev. Shame on you Financial express.
                Reply
                1. V
                  Veera
                  Dec 30, 2016 at 5:36 am
                  How come these kind of articles are coming in FE ? are there no unbiased intellectuals ?
                  Reply
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