Two Years After Demonetisation: Scars from 2016 are More Visible, Says Man Mohan Singh
On the day of second anniversary of demonetisation, former Prime Minister Manmohan Singh said that the scars and wounds are only getting more visible from 2016 with time.
On Thursday, the Congress held protests and demanded an apology from Prime Minister Narendra Modi for “ruining and wrecking” the economy.
Manmohan Singh urged the government to restore certainty and visibility in economic policies. “Today is a day to remember how economic misadventures can roil the nation for a long time and understand that economic policymaking should be handled with thought and care”, he said.
Small and medium scale businesses are yet to recover and it has had a direct impact on employment of the youth, financial markets, and non-banking financial sectors.
The financial markets are volatile as the liquidity crisis wrought by demonetisation is taking its eventual toll on infrastructure lenders and non-bank financial services firms.
We, till now, didn’t understand and experience the impact of the demonetisation effect. Macro-economic headwinds are also starting to blow now, with a depreciating currency and rising global oil prices, Man Mohan said.
He advised government not unorthodox anymore which causes more uncertainty in the economy and financial markets.