S. Gurumurthy, a well-known political and economic analyst, has been a kind of crusader for curbing the role of black money in the Indian economy. In an interview on Doordarshan, recently, he lashed out at opponents of demonetization saying, it was long due and how it will impact the Indian economy positively. (Scroll down to the video if you’re in a hurry!)
Keeping other aspects about the arguments extended aside, he made two valid points, which the Modi haters are not even talking about. One vital pointed being overlooked is that since the announcement of the decision, about 3% of the total currency deposited with banks was in the state of Jammu and Kashmir.
This was despite the threats held out by extremists, but the people did queue up at the banks. Another important outcome, which opponents of demonetization are trying to ignore is that there has been a sudden drop in unrest in the Valley. Surely there is a connect, which many blinded people are unwilling to see.
The new currency has for all practical purposes eliminated counterfeit currency. Till last month, counterfeit currency was operating in Rs 500 and Rs 1,000.
Apart from the Jammu and Kashmir issue, backbone of the Naxalite funding has also been decisively broken. It is now estimated that about Rs 50,000 to Rs 60,000 crores of the extremist funding was in cash. Needless to say, it has now become difficult for them to deposit this and their funding has been struck a body blow.
False propaganda about demonetization is being spread by black marketeers, tax evaders, political parties and personalities who have much to hide but to get a correct perspective about the whole issue being played out and how this is a game changer for country, do watch this video and it will bring about much clarity.