Washington: A top US magazine says that the decision to ban currency of Rs. 500 & Rs. 1000 or demonetization by Narendra Modi has proved to be the most destructive experiment in the country in recent economic history.
In the latest version of 'Foreign Affairs' magazine, senior research fellow author James Crabtree wrote, “This (demonetisation) has proved to be one of the most disruptive experiments in recent economic history, and one from which Modi’s administration now risks learning all the wrong lessons.”
So far Modi’s economic achievements are real, but his record on delivering growth-enhancing reforms, especially those that risk upsetting the public, is mixed,” Crabtree wrote. “Although his grand gesture of demonetisation made little sense economically, it has proved enduringly popular, and it appears to have made only a minor dent in the GDP. As he approaches 2019, it is not hard to see the lesson that he might learn,” he wrote.
“The fact that demonetisation has been bad for short-term growth is no longer in doubt. Last week, India released GDP figures for the first quarter of 2017, the period when Modi’s demonetisation had its largest impact,” he wrote
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