Demonetisation alone can’t fight graft cases, says noted economist Jagdish Bhagwati

By: |
New Delhi | Updated: Jan 06, 2017 10:16 PM

Noted economist Jagdish Bhagwati has today praised Prime Minister Narendra Modi for the demonetisation step.

Decision to ban old currency notes of Rs 500 and Rs 1,000 has served its purpose in the country, he says. Decision to ban old currency notes of Rs 500 and Rs 1,000 has served its purpose in the country, he says.

Noted economist Jagdish Bhagwati has today praised Prime Minister Narendra Modi for the demonetisation step. Speaking to ‘India Today’ channel he said that even while, the PM had taken a bold move with the decision, but he should have consulted more. He further said the decision to ban old currency notes of Rs 500 and Rs 1,000 has served its purpose in the country, but it alone cannot fight the menace of black money and graft cases.

The economist also pointed out that there are many dimensions to the noteban and added that there is no short term relief in sight for the people of the country.

Since the announcement of the demonetisation, people across the country were seen standing in long queues in front of banks and ATMs, most of them even returning empty handed because of shortage of cash. Yesterday President Pranab Mukherjee had said that while the decision would help in fighting corruption, It might also lead to a slowdown of the economy temporarily. He had further said that the government must be extra careful while alleviating the suffering of the poor.

You may also like to watch this video

Earlier in the day, a HSBC report had said that India’s GDP might have grown at a slower-than-expected pace of 5 percent in the October-December period and may see a 6 percent growth in the following quarter due to a slowdown in manufacturing and services sectors post demonetisation.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Festive mood in Kamala Harris’s ancestral villages in Tamil Nadu ahead of her swearing-in as US Vice President
2West Bengal Election 2021: Ranjan Banerjee, senior V-P of Aditya Birla Group, joins BJP
3Budget Session 2021 Fact Sheet: From COVID test for MPs to schedule, all you need to know