Prime Minister Modi’s demonetization led to collapse of the Indian economy by breaking the backbone of the agriculture ,stalling the industrial production and output ,driving the trading and transportation activities to a halt,badly hitting the tourism sector which in turn will stop the flow of foreign currency and plunging the job creation to a 7 year low besides retrenchment of employees due to scarcity of cash . To sum up India’s economy will be driven to a grinding halt and it will take years to revive the growth and economy and the country will be left behind by years.
The demonetization scheme of Modi has backfired in many ways being implemented in the harvesting and sale of Kharif crop and before the sowing of rabi crop that will be harvested during May 2017. It entails serious dangers to drastically drive down the agriculture economy even affecting the food production.
The demonetizing of the high value currency notes of Rs500 and Rs1000 has affected primary agriculture cooperative credit societies and central cooperative banks . Farmers are not able to sell their crop and unable to repay their loans on time and societies were not able to receive new fixed deposits and facing difficulties in receiving repayments on crop loans and other credits.
The most ridiculous situation has arisen where the agriculture Ministries initiatives are being nullified by the Finance ministry under the same Prime Minister.Infact the PM has not applied his mind to the consequences of this reckless demonetization scheme.
Another aspect of the present situation will be even more devastating as the cash crunch is severely affecting supplies resulting in high inflation that is bound to affect the stability of the nation. The Supreme Court has already warned that country may witness riots consequent to the scheme.Modi’s sudden move had dealt a severe blow to the industrial sector as the production across entire manufacturing units has been badly hit as the workers are compelled to spend their entire time in queues outside banks.
It is impossible for Modi to come out of the web of his schemes and the only way left for him is to exit .