While urban intellectuals didn’t buy the idea of demonetisation, a majority of rural Indians welcomed it with open arms, Infosys co-founder N R Narayana Murthy said during a lecture at Presidency University. It’s tough for me to understand the rationale behind demonetisation since I am not an expert at economics, PTI reported him saying on government’s banning of high value banknotes in November 2016 at Presidency University. When old Rs 500 notes were banned, new notes of same denomination and even higher of Rs 2,000 were introduced at a faster pace, he added. It’s difficult to answer why it happened, and only experts can answer this, Narayana Murthy said further.
Unlike Japan or China, India hasn’t yet focussed on low-tech manufacturing since the 1950s, he said. He also said that India’s primary schooling infrastructure where 75 percent of children drop out before reaching class eighth. The are only fit to handle low-tech manufacturing jobs by the time they reach the age of 22 and it shows economists never thought about them since 1950s, he added.
On being asked about the automation and human beings, Murthy said that a right balance needs to be struck between the two and decide how much automation is required up to certain level of our manufacture or services.
Meanwhile, the International Monetary Fund (IMF), said earlier this month that the Indian economy is on its way to recover from the disruptions caused by demonetisation and implementation of goods and services tax (GST). However, disruptions arising out from note ban and GST had an impact on the growth, IMF said. Disruptions from demonetisation and the GST did slow growth,” Tao Zhang, Deputy Managing Director of IMF, said. The international body also underscored the significance of the reforms in key sectors such as education, health and banking and financial sectors. The economy is on its way to recover from the disruptions caused due to both these economic reforms, IMF said. On union budget 2018, IMF said that its research states that it is broadly contractionary, reducing output, investment, and employment, although many economists term it as protectionist in nature.