Demonetization Was a Misguided Concept: Raghuram Rajan

Dr. Manmohan Singh (file photo). Courtesy: Congress
Dr. Manmohan Singh (file photo). Courtesy: Congress

Rajan said that the Indian government must analyze the reasons for persisting economic slowdown instead of just blaming the global factors for the current predicament.

Former RBI Governor Raghuram Rajan has reiterated that demonetization imposed by PM Narendra Modi was a misguided concept which along with the poorly implemented GST badly hit the Indian economy. Modi had demonetized currency notes of Rs. 500 and Rs. 1000 on November 8, 2016.

As people were not able to withdraw their own money from banks and many died while standing in queues in front of banks, Modi’s decision had caused a total chaos in India.

Nobel laureate and world’s top economist Professor Amartya Sen said Modi’ demonetization decision has shown the authoritarian nature of the Indian government.

Similarly, former Prime Minister of India and leading economist Dr. Manmohan Singh said in India’s Parliament that Modi’s demonetization scheme is a case of organized loot and legalized plunder.

Rajan expressed his views during a lecture at the Watson Institute for International and Public Affairs, Brown University, the U.S. on October 16, 2019.

He added that the Indian government must analyze the reasons for persisting economic slowdown instead of just blaming the global factors for the current predicament.

Rajan observed that demonetization along with the faulty implementation of GST has hit the Indian economy which was already facing the problem of lack of investment in the country.

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Rakesh Raman