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Interview Niti Aayog’s Bibek Debroy: Demonetisation was for institutional cleansing

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Bibek Debroy
Bibek Debroy during an interview with IANS in New Delhi. (Photo: Bidesh Manna/IANS)

New Delhi, Nov 9: NITI Ayog member Bibek Debroy admits that demonetisation was a temporary shock on growth but asserts that the economy has now climbed back. One year into the disruptive note ban, Prime Minister Narendra Modi’s economic policy adviser says the worst is over and there are signs that things are improving now.

He also says demonetisation should not be seen through a narrow cost-benefit calculus but as a move aimed at “institutional cleansing”.

“Yes, there has been a dip, but followed by a climb back. If you look at the data, there has been a slowdown in the growth rate continuously. I have not seen any data, even remotely statistical, which suggests that demonetisation has led to a more than temporary shock in terms of growth or employment,” Debroy, who heads the Economic Advisory Council revived recently by the Prime Minister, told IANS in an interview.

Debroy said demonetisation should not be looked at only from an economic perspective.

“If I evaluate it with a narrow economic cost-benefit calculus, I think that would be unfair, because the intention (behind the move) was not narrow economics,” Debroy said. The decision was aimed at institutional cleansing. “How do I even quantify and measure it?”

“If I look at it only with that economic lens, I will evaluate the costs and the benefits in a certain way. If I look at it with a political-economic kind of lens of cleansing up the system, I will evaluate it in a slightly different way.”

Debroy said that purely in terms of economics, one will not have to wait too long as some data, like that of direct tax collections, would come out soon which would reflect demonetisation and help understand its implications.

There was “excessively high” prevalence of cash in the system till last year and cash-to-GDP ratio has now sharply declined by almost one-third post-demonetisation, he said.

Debroy said that before demonetisation, the cash-to-GDP ratio in India was almost 13 per cent. “That’s excessive. It has now come down to a little over nine per cent,” Debroy noted.

“A lot of the cash in India was excessive and was not yielding returns to the person who held the cash, nor was it performing the role that money performs as a multiplier.”

“I’m not comparing with developed countries but even if you compare with other countries in South Asia, India had too much cash,” he said.

As per estimates, the cash-to-GDP ratio was 5.8 per cent in Bangladesh, 3.5 per cent in Sri Lanka and 9.3 per cent in Pakistan in 2015, whereas in India it was 13 per cent.

“That excessive cash has now vanished. The money has now come into the banking system. But that does not necessarily legitimise that money. You have to subject yourself to further scrutiny,” Debroy said.

Debroy has come out with a compilation, “On the Trail of the Black”, along with his colleague Kishore Arun Desai, with contributions from several writers tracing the prevalence of corruption and evaluating its impact on society and the economy.

He admitted that every decision related to the demonetisation exercise might not have been perfect.

“But we know that with the benefit of hindsight…. and this kind of thing had never been attempted before,” he said.

Read more…Bollywood’s organised sections escaped impact, but daily wagers suffered

He said the biggest challenge in implementing the demonetisation decision was to maintain the surprise element which was crucial.

Kishore Arun Desai, who edited the book along with Debroy, said the war against corruption was a work in progress and November 8, 2016, should not be looked at in isolation.

“We’re talking a lot about November 8, but there are a series of actions that the government has been taking ever since coming to power, starting with setting up an SIT on black money, followed by the Benami Transactions Act, an act for transparent auction of coal mines, the Income Declaration Scheme, the RERA Act and the Jan Dhan Yojana.

“We have been witnessing the overall intent of the government of cleaning up the economy across various sectors and demonetisation was just a trigger and one of the boldest steps,” Desai told IANS.

IANS

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Joe Biden declares his administration ‘ready to lead the world’

“We need to invest in our people, sharpen our innovative edge, and unite the economic might of democracies around the world to grow the middle class and reduce inequality.”

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Joe Biden

New York: Joe Biden, who is to assume the presidency in January, has announced a policy of reasserting US world leadership as he introduced his foreign policy and national security teams.

The officials he is designating for the key roles in his administration are “ready to lead the world, not retreat from it, ready to confront our adversaries, not reject our allies, and ready to stand up for our values,” he declared on Tuesday in Wilmington while outlining his foreign policy.

In talking to world leaders, he said, “I’ve been struck by how much they are looking forward to the United States reasserting its historic role as a global leader.”

Biden was a critic of Trump’s brand of “America First” that prioritised the nation’s needs and was against military interventions abroad like in Iraq, Libya and elsewhere that the Democrat had advocated or been a party to.

By strengthening ties with allies and working with them, Biden said that he will “truly keep America safe without engaging in needless military conflicts, and our adversaries in check and terrorists at bay.”

Those he has picked for his team “embody my core belief that America is strongest when it works with its allies,” he said.

In resetting the foreign policy, he said, “Let’s begin the work to heal and unite America and the world.”

The pick for secretary of state, Antony Blinken said of his approach to foreign policy, “We must proceed with equal measures of humility and confidence. Humility because most of the world’s problems are not about us, even as they affect us. We cannot flip a switch to solve them.”

He added, “We need to partner with others. But also, confidence, because America at its best still has a greater ability than any country on earth to bring others together to meet the challenges of our time.”

Jack Sullivan, who will be the national security adviser, said, “We will be vigilant in the face of enduring threats, from nuclear weapons to terrorism.”

Without mentioning China by name, Biden spoke of the looming “competition for the future” and said the US would have to “do things like counter the predatory trade practices of our competitors and adversaries.”

But also, he said, “We need to invest in our people, sharpen our innovative edge, and unite the economic might of democracies around the world to grow the middle class and reduce inequality.”

Biden gave high priority to the environment and climate change as he introduced his high-powered envoy for the issue, John Kerry, a former senator, candidate for president and secretary of state.

“For the first time ever, the United States will have a full-time climate leader who will participate in ministerial-level meetings,” he said. “The world will know that one of my closest friends — John Kerry — is speaking for America on one of the most pressing threats of our time.”

He added, “I don’t for a minute underestimate the difficulties of meeting my bold commitments to fighting climate change. But at the same time, no one should underestimate for a minute my determination to do just that.”

Kerry’s remarks indicated the Biden administration will be pressuring other to do more to fight climate change.

He said, “No country alone can solve this challenge. Even the United States, for all our economic might, is responsible for only 15 per cent of global emissions. The world must come to this table to solve this problem.”

The US, however, has only 4.22 per cent of the world population.

He said that all the nations must increase their commitments to cutting greenhouse gases at the UN climate change conference next year in Glasgow “or we will all fail, together”.

Biden welcomed the decision by the Trump administration’s General Services Administration on Monday to provide his transition access to information for a “peaceful transition of power” to enable him “to control the pandemic, build back better, and protect the safety and security of the American people.”

Meanwhile, Trump made a rare appearance since the election for what was probably his shortest news conference to celebrate the stock market barometer, the Dow Jones Average, crashing through the 30,000 mark even though he had predicted that the market would crash if Biden won. He spoke about 60 seconds and left without answering the questions shouted at him.

Later, he conducted the annual faux ritual of the president “pardoning” a turkey from slaughter for the traditional Thanksgiving Day meal that features the bird as the main course.

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National Milk Day: Know history, significance of this day; Interesting facts about milk here

National Milk Day was established in 2014 by the Food and Agriculture Organisation to commemorate Dr. Verghese Kurien, who is considered the father of India’s White Revolution.

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Amul Milk Production

Every year, National Milk Day is celebrated on November 26 across India. The largest milk producing country celebrates this day to demonstrate the importance of milk in everyone’s life. It is worth noting that National Milk Day and World Milk Day are two different events, observed on different dates with different significance.

National Milk Day was established in 2014 by the Food and Agriculture Organisation to commemorate Dr. Verghese Kurien, who is considered the father of India’s White Revolution.

Why is National Milk Day Celebrated?

National Milk Day is celebrated on November 26 all over India, and it was established by the Food and Agricultural Organisation in 2014.

The day is dedicated to honouring Dr. Verghese Kurien, who is considered to be the father of India’s White Revolution. November 26 is also his birth anniversary, which is why this day is even more important as it also highlights his contribution to the country’s dairy farming and production.

First National Milk Day:

The Indian Dairy Association (IDA) in 2014, took the initiative to celebrate this day for the first time. The first National Milk Day was marked on November 26, 2014, in which various milk producers from 22 states participated.

Kerala-born, Dr Verghese Kurien is known as the ‘Milkman of India’ and the father of the 1970s White Revolution. He came with the one billion litre idea of turning a milk-guzzling country into world’s top dairy producer.

National Milk Day: Interesting facts about milk here

Milk is one of the best sources of calcium and the only drink in the world that contains such a large amount of natural nutrients.

Dr Verghese worked towards enabling the country to have its own production centres of milk. His support was crucial in making the Amul girl ad campaign-which is one of the longest-running campaigns for decades.

His accolades include Ramon Magsaysay Award, World Food Prize, Padma Shri, Padma Vibhushan, Padma Bhushan and Wateler Peace Prize.

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Amazon Quiz Answers Today, November 25, 2020: Answer and Win Rs 5000 Pay Balance

Amazon quiz Answers Today, November 25, 2020: The Amazon Quiz for November 25, 2020, is live and today you have the chance to Win Rs 5000 Pay Balance.

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Amazon

Amazon quiz Answers Today, November 25, 2020: The Amazon Quiz for November 25, 2020, is live and today you have the chance to Win Rs 5000 Pay Balance. The trivia quiz gives a chance to users across the country to win exciting gifts every day by answering a set of simple questions.

After giving the right answers to the questions users can win mobile phones, other gadgets, and Amazon Pay Balance. E-commerce giant Amazon never disappoints its users and today’s gift is special for all the online shopping lovers.

Today’s Amazon Quiz Information

Today’s Amazon Quiz Prize: Win Rs 5000 Pay Balance
Amazon Quiz Date: November 25, 2020:
Amazon Quiz Time: 8 am–12 pm
Winners List Declaration Date: To be announced

Answers for today’s Amazon quiz contest- November 25, 2020

Q1- Char-chaporis are shifting riverine islands of the Brahmaputra located in which Indian state?
Ans- Assam
Q2- In 2020, who became the first bowler to pick up a wicket off the first ball in an IPL final?
Ans- Trent Boult
Q3- Alu, Bittu and Sattu are characters in which recent Rajkummar Rao movie?
Ans- Ludo
Q4- These objects are used to do what kind of activity?
Ans- Surfing
Q5- In which city also known as the ‘Blue City’ is this picture taken?
Ans- Jodhpur

How to Play Amazon Quiz Contest Daily?

1. Download the Amazon India App from Google Play Stores or Android App
2. Sign up or log in to your Amazon account
3. Once login you can check the homepage banner of the App click on Amazon Quiz for today.
4. Start playing the Amazon quiz contest.

Where to find the latest answers for Amazon Quiz?

You can find all the right Answers for Amazon Quiz here. With Amazon Quiz you can win various exciting prizes. Choose the right answers for the Amazon daily quiz and you can be the lucky winner. The Amazon Quiz contest is live at 8:00 AM and it ends at 12:00 PM.

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