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