BHOPAL: November 8 will mark four years of demonetisation. After four years, country’s economy is still not on tract. Due to demonetisation, economy got a jolt and now it is because of coronavirus that led to lockdowns in the country that hit trade and commerce. However, a section of market experts say that demonetisation is irrelevant as Covid has damaged the economy more.
It was on November 8, 2016, Prime Minister Narendra Modi had made the announcement about demonetisation. The four long years witnessed several changes in economic sector. The greatest change that followed demonetisation was the growth of digital payment. Though demonetisation began as a way to curb black money, later it became a means to make India cashless.
Multinational companies like Google Pay, Paytm, Phone Pe launched payment platforms. Banks too launched mobile application for transactions. Even apps like WhatsApp and Flipkart encouraged use of digital money. Covid increased usage of digital payment as people were asked to follow social distancing. Free Press talked to some experts to know their views. Excerpts
“After demonetisation, demand declined in market so it had adverse impact on production. Then, GST was introduced so traders suffered because of double impact – demonetisation and GST. Now, economy is slowing catching up after unlocking the market following coronavirus. But it will take time before it fully recovers.”
Dr Harishar Basant Gupta, economics HOD, Institute for Excellence in Higher Education (IEHE), Bhopal
Revival to take 4-5 years
“It will take four to five years for economy to revive. Economy further derailed because of coronavirus. So, economy that was affected due to demonetisation has been doubly hit. After demonetisation, the digital payment sector grew tremendously with many multinational companies launching payment platforms. It became need of hour in pandemic time.”
Dr Anjali Jain, economics professor IEHE
No demonetisation impact
“Demonetisation is now irrelevant after four years. Just because of stiff competitive market, economy growth is not visible. So traders should stop raising demonisation issue and instead focus on their business. It is not because of demonisation but because of Covid that Indian economy has derailed.”
Bhopal Chamber of Commerce president Lalit Jain
Government taking steps
“It is irrelevant after four years. Traders should not blame demonisation for slow down of economy. Now, it is corona, which has played a major role in derailment of economy. It will take minimum two years for Indian economy to revive. Government is working on it for speedy revival.”
Kalpataru Multiplier Limited MD Adtiya Manya Jain