The short term affect of Modi’s clampdown on the cash economy will have a cascading effect on Indian economy from agriculture -small traders-manufacturing units-exports Industry based on agriculture and cooperative banking.
In the long run, India, which is Asia’s third-largest economy will witness famine like conditions due to loss of food production that will continue for years till the food stocks are replenished.Therefore,the common man will suffer on account of double edged onslaughts of high inflation and food scarcity.
In 16 days of demonetization, the banks have only been able to retrieve about 10% of the demonetized notes so one can analyse how long it will take to replenish the remaining currency notes.
Former Indian Prime Minister Indira Gandhi did a remarkable job by nationalising the banks which were catering to only the needs of the Capitalists. She made available the cash to the poor and agriculturists and the small enterprises that made our economy bloom for years. Now,Modi is reversing the flow of funds away from the common man and destroying their confidence and trust in the banking system by waving off loans of Industrialists.
Now the poll survey which Modi has launched via a Smart Phone app is simply an eyewash.
- Questions have been framed for misleading the masses in a polarised environment created by the BJP.
- Questions have been designed in such a manner whose answers are obviously expected by the PM.
- The survey does not include the voice of rural India as they cannot afford smartphones .
- The warning have been issued by global financial services like Brokerage Ambit Capital has stated that the cash crunch is expected to pull down economic growth from last year 7.6%by as much as 4.1% in 2017.
Moody Investors service warned the persistent cash crunch could worsen the assets quality of Indian banks.
The demonetization scheme may be with the right intentions but there are many options in the financial system to crackdown on corruption, tax evasion and militant financing.
But Modi opted for demonetisation to project a larger than life image for himself but he is in a hurry .He fails to understand how three policies can be implemented simultaneously viz demonetisation , GST from 1 April 2017 , more anti-corruption measures on Benami properties.
There will be an upheaval in the economic structure of the country and will drastically effect the common man’s life as already 54 people have died in a mere span of 15 days and that too only in cash crunch.
The mess that has been created by Modi and will obviously extend the end of his tenure in 2019 will pull down his government and tarnish the image of BJP immensely and PM Modi will have to take the blame for all this upon himself.