The Telegraph
Tuesday , January 10 , 2017

Singh: All's well chorus wrong

Manmohan Singh

New Delhi, Jan. 9: Former Prime Minister Manmohan Singh today iterated that demonetisation would have "a very significant adverse impact" on economic growth, contending that those who claimed a positive impact would be proven wrong.

"I have said in Parliament what I had to.... This will affect the GDP. Those who are saying this decision will not harm the economy are wrong. What we are seeing now has proved beyond doubt that the GDP will get affected," Singh told reporters while releasing the Congress manifesto for the Punjab Assembly elections.

"The NIU (National Income Unit) of the CSO (Central Statistical Organisation) has come out with a statement that the GDP growth will be 7.1 per cent as against the target of 7.6 per cent. This does not take into account the effect of demonetisation. When that is taken into account, you will see that there will be a very significant adverse effect on the country's GDP," he added.

Singh felt that demonetisation would be an issue in all the election-bound states.

Although the former Prime Minister had expressed in Parliament the fear that the GDP could fall by 2 percentage points, Prime Minister Narendra Modi has not yet responded to the substantive points raised by his predecessor.

Modi has described those criticising the implementation of demonetisation as "political worshippers of black money".

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