Akhilesh Yadav challenges BJP to debate on economic status of India
The Samajwadi Party chief alleged that the 2016 demonetisation policy damaged the banking system and small businesses.
Samajwadi Party (SP) chief Akhilesh Yadav on Wednesday criticised the 2016 demonetisation policy, describing it as a global corruption scandal. Speaking at a press conference in Lucknow, Yadav claimed the move acted as slow poison for the economy and harmed micro, small and medium enterprises (MSMEs) and small traders, according to reports by Times of India and ANI.
Yadav alleged that the circulation of cash has risen by 70 per cent compared to previous levels. He further claimed that the policy was intended to sink the banking system, noting that banks were merged, shut down, or sold. He also questioned recent banking reforms, including privatisation and mergers.
The SP leader challenged the Bharatiya Janata Party (BJP) to a debate comparing India's economic state in 1947 with its projected position in 2047. He stated that the demonetisation decision pushed the economy back to the levels seen at the time of independence.
The central government withdrew Rs 500 and Rs 1,000 notes on November 8, 2016, to tackle black money and tax evasion. The government has maintained the exercise was successful in increasing income tax returns. The finance ministry stated that between November 2016 and March 2017, search operations resulted in the seizure of Rs 900 crore, including Rs 636 crore in cash, and the admission of undisclosed income of approximately Rs 7,961 crore.