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BJP’s ‘Ill-Considered Demonetisation Decision’ Has Resulted In High Unemployment: Manmohan Singh

Congress leader Manmohan Singh also said that the country’s informal sector ‘is in shambles’

BJP’s ‘Ill-Considered Demonetisation Decision’ Has Resulted In High Unemployment: Manmohan Singh
Former PM Manmohan Singh | PTI
BJP’s ‘Ill-Considered Demonetisation Decision’ Has Resulted In High Unemployment: Manmohan Singh
outlookindia.com
2021-03-02T14:44:35+05:30

Lashing out at the Centre, former Prime Minister Manmohan Singh, said India’s unemployment rate has spiked due to the “ill-considered demonetisation decision” taken by the BJP-led government in 2016. The senior Congress leader further added that the informal sector is in “shambles”.

"Unemployment is high and the informal sector is in shambles, a crisis precipitated by the ill-considered demonetisation decision taken in 2016", Singh said.

He made the comments during the inauguration of a development summit organised by the Rajiv Gandhi Institute of Development Studies, a Kerala-based economic think tank aligned to the Congress ideology.

Singh also criticised the central government for not holding regular consultations with the states adding that “temporary measures” taken by the BJP and the Reserve Bank of India “to paper over the credit problem cannot solve the looming credit crisis that could affect the small and medium sectors”.

The summit was organised to launch a Vision Document, a framework of ideas for development of Kerala well in advance of the state elections.

Singh said in Kerala and in many other states, public finances are in disarray with states having to resort to excessive borrowing, which creates an intolerable burden on future budgets.

"Federalism and regular consultation with states, which was the cornerstone of India’s economic and political philosophy as enshrined in the Constitution, no longer finds favour with the present Central government," he said.

Singh also said while Kerala's social standards are high, there are other sectors that need strong attention in the future.

"There are many roadblocks ahead that the state has to overcome. The global downturn of the last two or three years, aggravated by the pandemic, has made the global interface of Kerala more fragile.

"While the increased use of digital modes of work may keep the IT sector afloat, tourism has been hit badly and the rate at which the pandemic is galloping in Kerala poses challenges for this industry", Singh said.

Noting that the focus on health and education has enabled Kerala to take advantage of job opportunities elsewhere in the country and in all parts of the world, Singh said this has led to a growing stream of remittances from abroad which created a booming real estate sector and sharp growth of the services sector, led by tourism and information technology.

"In the midst of all the gloom, I see the UDF's steadfast adherence to planned growth with a clear sense of direction and concern for the common man a beacon of hope, not only for Kerala, but for the whole country", he said.

"When I presented the national budget in 1991 as Finance Minister, I quoted Victor Hugo, who had said, "Nothing is more powerful than an idea whose time has come."

I get the feeling that the unanimity and clarity displayed by the UDF on the road ahead will lead to Kerala's idea moment arriving this year", he said.

(With PTI inputs)

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