Political parties’ reaction on demonetisation premature: Businessmen

FPJ BureauUpdated: Thursday, May 30, 2019, 02:37 AM IST
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BHOPAL : Union finance minister Arun Jaitley’s announcement that BJP will celebrate November 8 as ‘Anti-black money Day’ and Congress party’s declaration that it will observe it as ‘Black-Day’ have evoked mixed response from business community.

Prime Minister Narendra Modi had introduced demonetisation on November 8 last year.

Business associations are of the view that it is premature for BJP to celebrate the occasion just after one year of demonetisation. They said market will take time to recover from jolt. They said demonetisation has siphoned off the cash from the circulation in the market but has not detected black money.  As circulation of money has been blocked, business transactions have been affected. This, they said, will affect country’s GDP rate.

Free Press talked to heads of different business associations to get their views on the subject.

n Kalpatru Multipliers Private Limited managing director Aditya Manya Jain: “Earlier, black money was in the market but it was in circulation so market was working. After demonetisation, circulation of money has been blocked while black money has not been identified. On the contrary, demonetisation has had an adverse impact on market growth. Market will take time to recover.”

n Bhopal Chamber of Commerce president Lalit Jain: “The effect of demonetisation has gradually percolated in the market, so traders as well as customers are getting familiar with the new trend of the market. There is nothing to worry. Market will overcome teething problems soon.”

n Former PHD Chamber of Commerce president Rajendra Kothari:   “demonetisation has failed to detect black money. If my grandparents have money and I am using it, how it can be called black money.  So far, the main object of demonetisation has not been fulfilled.”

n Hind Pharma company owner and Federation of Madhya Pradesh Chambers of Commerce and Industry (FMPCCI) president R S Goswami:  “demonetisation has not affected market. My industry has registered 110 percent growth despite demonitisation as I opted for cashless transactions since 2007.”

n New Market Traders Association president Satish Gangrade: “It will take years for the market to recover from setback caused due to demonetisation. Even after one year, we are facing its brunt.  Customers are also facing problems due to liquidity crunch.”

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