Attacking again the Narendra Modi government’s demonetisation decision, the former governor of Reserve Bank of India, Raghuram Rajan now denied that he never said that the government did not consult with the Central Banks about the move, however, said that it was not a good idea. “Never said I wasn’t consulted on it. In fact, I have made it quite clear that we were consulted and we didn’t think it was a good idea.” Rajan told CNNNews18. On the Goods and Services Tax Bill, which resulted in many protests by shopkeepers, he further said, “We will figure it out eventually. It’ll be nice if we could implement much better than we do. ”
In March, Rajan had raised concern about the employment generation, saying India’s 7.5% growth will not be enough for the 12 million people, who are coming into the labour market every year. The Modi government had last month introduced new labour rules to hire workers on contract for a fixed term. The changes were made in order to address the problem of jobless growth, a major political challenge for the government ahead of the 2019 general election.
On November 8, Prime Minister Narendra announced the demonetisation of all Rs 500 and Rs 1000 banknotes in order to curtail the usage of black money and counterfeit cash to fund illicit activity and terrorism. Later on, the motive was changed to transcending digital. Initially, the move was supported by several bankers and international commentators however due to poor implementation it received criticism with various protests in various places across the country.For all the latest Business News, download NewsX App