Mainstream, VOL LIV No 48 New Delhi November 19, 2016
Prime Minister Modi’s Black Money Magic
Monday 21 November 2016
by M.C. Pindwal
The demonetisation of Indian currency, as announced by PM Modi at 8 pm on November 8, 2016 in his address to the nation, has no solid basis. It is being argued from the government’s side that demonetisation of Rs 500 and Rs 1000 currency notes was necessary due to huge duplication in circulation upto 80 per cent. However, this is not true. No doubt these were in circulation but it is the ever increasing black money, certainly a dangerous portent to the Indian economy, that might have compelled the government to take this drastic action compelling the poor people to encounter the most inconvenient period of their life with all relief to the rich people who have no dearth of money or its equivalent in terms of gold, silver, shares of various companys or investment in properties.
The earlier result of demonetisation of Rs 10,000 notes in 1978 by the Janata Party Government had failed to achieve anything significant despite many advisory committee reports on removal of the black money menace.
Hence, this action of the government shall be watched with great curiosity by the people of India as we watched PM Modi’s visit to Pakistan followed by Pathankot and the much proclaimed surgical strike which was followed by increasing number of deaths on the Indian border that should have been avoided in the light of the most efficient strike ever taken by India.