Demonetisation is simultaneously a threat, a challenge and an opportunity. This bold step must yield target dividends unless further supported by many more revolutionary reforms Government must take may be in a phased manner but with more preparedness, integrity and strong political will power.
Undoubtedly irresponsive opposition political parties largely responsible for culture of rampant tax evasion in India through back door backing of black money hoarders misled the public by making avoidable noise made under the shadow of the inconvenience caused to masses in queuing up to banks and ATMs for cash withdrawal / conversion deserves to be condemned only.
Nevertheless, We cannot afford to ignore the immense adverse effect on certain sectors like Rural economy, small traders, and daily wage earners having no connectivity with banking network.
Whereas. The woes of luxury sectors like watches. liquors. casino. cars. lavish tourism. big fat wedding and other such items which are normal consumption feed for the rich who account for not even 1 % of our total population and have chopped more than 50% of India’s wealth needs not much or no attention.
The corruption and black money are the two biggest hurdles blocking the inclusive growth of India and destroying social fabric. cultural heritage and value system of our country at a much faster rate our civil society can handle.
India is the most unequal society in the world surprisingly, India dominates the world’s poorest 10 per cent, while China dominates the global middle class and the United States the world’s rich. The world’s super-rich – the top 1 per cent – is overwhelmingly American. Indians make up just 0.5 per cent of the world’s super-rich.
53 billionaires in India- sounds like the gala of developing India. Claiming the 4th rank in the world in the number of billionaires after the US, Russia and Germany and being ahead of China, UK, Japan and France shows.
Some more statistical data would further vouch for the fact how wide is the spread of extreme poverty and miserably painful wide is the gap between HAVES AND HAVE-NOTS in India which is a broadly a socialist economy.Online GST Certification Course by TaxGuru & MSME- Click here to Join
SWOT ANYLSIS OF DEMOENTISATION
Any welfare government like ours must accord first priority in its agenda to deal with this challenge firmly. So Demonetisation is a WELCOME attempt to discourage cash hoarding which is eventually an unproductive asset component of national wealth.
This long over due and much-needed action to reverse the ugly trend of rapidly increasing corruption and black money must be viewed through the prism of long-term economic virtue.
Some more preparedness would have compromised the confidentially of this move is a valid argument given by government and must be accepted in good faith. Certainly pro action like calibration of ATMS, Printing of new currency, logistics of currency distribution and mechanism of implementation should have lessened the troubles of a common man to some extent.
Indian can benefit from this massive exercise experimented with its 1.3 billion people –
STRENGTHS – BENEFITS
WEAKNESESSES – No policy change of such a magnitude in a vast and diverse country like India where can be implemented with no inherent pitfalls.
OPPORTUNITIES – Government in power having clear mandate with charismatic leader like Modi Ji also enjoying emotional support of masses must spring into action by taking radical measures to reap sizeable benefits of his drive to curb generation of black money
Some of the suggested measures which MUST be on the agenda of government are –
CURRENT PERMANENT AMNESTY TO POLITICAL PARTIES IS THE HEIGHT OF GROSS ABUSE OF DEMOCRACY BY THE POLITICAL PARTIES WHO ASSUME POSITION OF POWER TO BRING GOVERNANCE IN THE COUNTRY.
“POLITICAL FUNDING IS THE MOTHER OF ALL COURRPTION IN THE COUNTRY.”
“CHARITY MUST BEGIN AT HOME.”
THREATS – THE ACTIONS NECESSARY FOR ACHIEVING THE END RESULT IF NOT TAKEN OR DELAYED OR NOT HANDLED RIGHTLY WOULD POSE THREAT FOR –
The demonetisation without a dispute is one of the very bold steps India needs to bring a revolutionary change the way wealth India generates. accounts for and finally distributes to it’s citizens. The subsequent follow up actions would only help us to reap it’s rich dividends. It puts a check on greed manifestation. The corrupt practices has become accepted norm in our most of the economic life.It must be checked to reward merit. honesty and integrity.
A cultural shift for keeping more faith in accounted money would not only spur higher economic growth but would do justice in the equitable distribution of wealth.
“POLITICAL FREEDOM IS MEANINGLESS WITHOUT ECONOMIC INDEPENDENCE.”