Prime Minister Narendra Modi’s demonetisation move has left the citizens in sheer ambiguity regarding the effectiveness of the move in eradicating black money economy, isn’t it? How far is it going to work as a successful measure to curb corruption? Was it really formulated to eliminate the parallel economy which has developed in the Nation based on “unaccounted money”? Didn’t he calculate the dire consequences which the common mass would have to encounter? Is it an economic move against the big menace to the Indian economy , or a mere political tactic sheathed in the RSS’ version of MODIfication? These have been revolving in your mind for a while. So has it in our minds.
However, if you keep aside the short term troublesome period we’re all undergoing due to the long queues outside ATM counters, shortage of currency, refusal of Rs 500 notes as legal tender at markets and shops, there is a bright side to it. There is, there definitely is.
After all, there are always two sides to a coin isn’t it?
This is likely to be an immensely beneficial step for the economy in the long term. Let’s hope, Modi’s masterstroke, or as many like to put it, MODIfication, successfully integrates parallel economy with the main economy. Considering vital economic aspects, it will result in the improvement of fiscal deficit to the Gross Domestic Product ratio as the denominator expands.
As outlined by Chanda Kochar, Managing Director and Chief Executive Officer, ICICI Bank, “Modi’s bold move will definitely bring about a transition to no cash or low cash kind of transactions, that is, it is sufficiently going to impact discretionary spending.”
This “unprecedented move” of the Government is a combination of national security and other wider agenda, an absolute crackdown on corruption. Wonder why the issue of National Security comes up? Well, previously, haven’t you been wondering “who funds the terrorists?”. Exactly. Who finances them? It is that unaccounted money that has financed terrorism all this while. Terrorist groups have been using fake currency and dodgy funds to fund terrorism in India.
HDFC Chairman Deepak Parekh’s anticipation says “The land will become cheaper and one expects that real estate price will come down to medium terms.” In other words, a combat against inflation.
Besides, demonetization of Rs. 500 and Rs. 1000 currency notes will have a cleansing effect on the state economies as well which had been affected by the flow of Hawala money and fake Indian currencies from the Middle East. Top Enforcement Directorate Officials said that the Centre’s abrupt MODIfication has left hawala networks burdened with hordes of Rs. 500 and Rs. 1000 notes which they sadly, cannot offload now. This has indeed left them in a tight spot now.
Let’s throw light on what the Industry Veterans have to say about this action of the Modi Government. Well, bankers and industry lenders have welcomed the move as a “bold and revolutionary step” and affirmed their commitment to smoothen the transition.
Mahindra group Vice-Chairman, Anand Mahindra tweeted, “Success required an element of surprise and it’s incredible that the master stroke was kept confidential.” In a lighter vein, he added,“Urgent message to anyone who robbed a bank last night : you just got robbed!” His witty take on the issue is indeed the harsh reality for the huge black money stock holders today! All your affluence went down the drain, isn’t it?
While, PayTM founder Vijay Shekhar Sharma, whose company offers the much needed alternative for the cash economy, termed it as the “best move” which will boost digital payments. Of course, the grass is going to be greener on his side for a while!
Let’s take time to pity the ones who are either setting fire to their pile of notes as has happened in Uttar Pradesh or using it as a toilet roll, or perhaps simply leaving it in a sack somewhere on the streets just as an instance at Maharashtra. Suffering from Insomnia, you “well off” people, aren’t you?
You really need not worry about anything if you are an honest taxpayer, if you can prove the legitimacy of the Rs 10 lakhs you are carrying, you are just going to lead a happy peaceful life as you were already. Might happen you’ll get your skin tanned standing in long ATM queues, you might have to discipline your shopping schedule for a while, you might get into a small fight with the fish seller over “change” but it’s all going to be worth it if we, as a Nation, can eliminate black money economy from India through this MODIfication.
As we can see, advantages much dominating and comfortably outweighting disadvantages, so let us have faith in NaMo and hope for a better tomorrow, a developed Nation , a nation free of corruption.