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LATEST NEWS UPDATES | Policy by Whatsapp: A disregard of consequences in governing the new India -Samar Halarnkar

Policy by Whatsapp: A disregard of consequences in governing the new India -Samar Halarnkar

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published Published on Aug 26, 2019   modified Modified on Aug 26, 2019
-Scroll.in

Democracy requires a national character that isn’t grounded in ignorance and government policy that is not a sophisticated version of Whatsapp.

It is now clear – 1,020 days after Prime Minister Narendra Modi told India he was wiping out 85% of its currency, by value – that demonetisation was not just a failure but a spectacularly misconceived move.

That its destructive effects took at least 100 lives in its immediate aftermath, destroyed the incomes of millions, shuttered countless small-scale enterprises and shook the edifices of the largest companies was anecdotally obvious, aside from likely leading to a 45-year high in unemployment. This week, quoting a government report – probably suppressed for what it inadvertently disclosed – journalist Puja Mehra revealed that investments after the big D dropped Rs 4.25 lakh crore, down 60% over the previous year; falling, as a proportion of gross domestic product, from 10.5% to 2.7% over seven years.

Let’s first put some perspective to the Rs 4.25 lakh crore India lost in investments in the financial year 2016-’17: that is more than the amount India will spend this year on roads, railways, metro transit, education, the space programme and housing. It is more than the defence budget for this year – or enough to buy more than 250 Rafale jets (at their original 2014 price; France is now offering a 25% discount) and replace all those 44-year-old jets, as the air force chief put it this week, when no one even drives “cars of that vintage”.

But these are the value of investments India lost in 2016-’17. We do not yet know what happened over 2017-’18 and 2018-’19.

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Scroll.in, 27 August, 2019, https://scroll.in/article/934803/a-disregard-of-consequences-in-governing-the-new-india


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