Former Prime Minister Manmohan Singh on Thursday called the demonetisation move as a ‘monumental management failure and a case of organised loot and legalised plunder’ by the Narendra Modi government.
He remarked that demonetisation move would reduce the Gross Domestic Product growth of the country by 2 percent or more.
“This will hurt agriculture, small industry and everyone in the unorganised sector. My view is that GDP growth can fall by 2 per cent and that is an underestimate,” leading the opposition charge in Rajya Sabha on demonetisation debate Singh said.
He also said that the government’s insistence that people should wait for 50 days could bring disastrous effect for the poor.
He added that more than 60 to 65 people have lost their lives Since November 8 and the decree could “weaken and erode people’s confidence in the currency and banking system”.
Dismissing the Centre’s defence that the move would help in the long run, Singh recalled the quote “In the long run, we are all dead.”
Singh further said that Modi must come up with “a constructive proposal on implementing the scheme while preventing the distress caused to common people.”
He said bringing in modifications to the system poorly reflects on the Prime Minister’s Office, Finance Minister’s Office and RBI.
He urged Modi to find ‘practical, pragmatic ways’ to relieve the stress of the common people.
The former RBI governor pointed out that 90% of people working in the informal sector and 55% of workers in the agricultural sector are suffering due to the unplanned move.
