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Press Statement By Dr. Manmohan Singh, Former Prime Minister of India
November 8, 2018 | New Delhi
Today marks the second anniversary of the ill-fated and ill-thought demonetisation ex-
ercise that the Narendra Modi government undertook in 2016. The havoc that it un-
leashed on the Indian economy and society is now evident to everyone. Notebandi im-
pacted every single person, regardless of age, gender, religion, occupation or creed.
It is often said that time is a great healer. But unfortunately, in the case of demonetisa-
tion, the scars and wounds of demonetisation are only getting more visible with time.
Beyond the steep drop in headline GDP growth numbers after demonetisation, the
deeper ramifications of notebandi are still unraveling. Small and medium businesses
that are the cornerstone of India’s economy are yet to recover from the demonetisation
shock. This has had a direct impact on employment as the economy continues to strug-
gle to create enough new jobs for our youth. 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 are yet to understand and experience
the full impact of the demonetisation exercise. With a depreciating currency and rising
global oil prices, macro-economic headwinds are also starting to blow now.
It is therefore prudent to not resort to further unorthodox, short-term economic mea-
sures that can cause any more uncertainty in the economy and financial markets. I urge
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 under-
stand that economic policymaking should be handled with thought and care.

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Dr manmohan singh's statement on demon anniversary

  • 1. ! Press Statement By Dr. Manmohan Singh, Former Prime Minister of India November 8, 2018 | New Delhi Today marks the second anniversary of the ill-fated and ill-thought demonetisation ex- ercise that the Narendra Modi government undertook in 2016. The havoc that it un- leashed on the Indian economy and society is now evident to everyone. Notebandi im- pacted every single person, regardless of age, gender, religion, occupation or creed. It is often said that time is a great healer. But unfortunately, in the case of demonetisa- tion, the scars and wounds of demonetisation are only getting more visible with time. Beyond the steep drop in headline GDP growth numbers after demonetisation, the deeper ramifications of notebandi are still unraveling. Small and medium businesses that are the cornerstone of India’s economy are yet to recover from the demonetisation shock. This has had a direct impact on employment as the economy continues to strug- gle to create enough new jobs for our youth. 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 are yet to understand and experience the full impact of the demonetisation exercise. With a depreciating currency and rising global oil prices, macro-economic headwinds are also starting to blow now. It is therefore prudent to not resort to further unorthodox, short-term economic mea- sures that can cause any more uncertainty in the economy and financial markets. I urge 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 under- stand that economic policymaking should be handled with thought and care.