Demonetisation will cause loss of Rs 1.5 lakh crore to GDP: P Chidambaram

Chidambaram said that except Finance Minister Arun Jaitley, "no one in the world thinks that the GDP wont be hit.

Written by Aaron Pereira | New Delhi | Updated: January 11, 2017 1:32 pm
chidambaram, p chidambaram, rahul gandhi, chidambaram demonetisation, demonetisation, congress demonetisation, chidambaram cashless, congress demonetisation meet, chidambaram speech, india news P Chidambaram said that the demonetisation move would hit the GDP. (Source: ANI_news/Twitter)

Former finance minister P Chidambaram on Wednesday said the GDP of India would take a hit of at least one per cent if not two owing to the demonetisation move by Prime Minister Narendra Modi. “We will all have to suffer because of the folly of one person of this country… The country will face a loss of Rs 1.5 lakh crore,” Chidambaram said. He was speaking at the Jan Vedna Sammelan organised by the Congress Party to highlight the hardships faced by people across the country.

Seeking to debunk the “exaggerated claims of the Prime Minister”, Chidambaram said instead of targeting black money and corruption, the government has targeted the poor. “The first case of corruption since Rs 2, 000 notes were introduced took place in Gujarat,” Chidambaram said.

“Have you heard the CEA make a statement? Has the banking secretary or the finance secretary made a statement on demonetisation? The only person who believes the GDP will not be affected is Finance Minister Arun Jaitley,” he said.

Chidambaram also questioned who would compensate those who have lost their lives and livelihoods due to the Modi government’s decision. “I demand that the government pay compensation to the daily wage workers who lost their livelihoods,” he said, adding that 45 crore people lost their livelihood for 70 days “due to one man’s decision.”

Cabinet meeting?

Chidambaram also questioned the government over its claim that a Cabinet meeting took place on November 8 before Prime Minister Narendra Modi announced the move to demonetise. “We are yet to see a cabinet note of the meeting that took place, there has to be some record of the meeting taking place.” He also questioned how the Centre was confident that the RBI would agree to its suggestion of demonetisation while claiming that it is always the RBI that suggests and not the government. “They sent a suggestion on November 7 and announced on November 8.”

Cashless economy

On the government’s move to push for a digital, cashless economy, Chidambaram said across the world people are moving towards cash and it’s the opposite in India. “In Germany and Austria, 80 per cent of the transactions take place in cash. Australia sees 60 per cent of transactions in cash. In India it is 94 per cent…. Modi has heaped misery on crores of people.”

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  1. A
    Ash
    Jan 11, 2017 at 10:09 am
    This one lost Delhi,Bihar.Could it be there is disillusionment within the mes?Are people beginning to see thru the jumlas and fake promises of 15 lac.
    Reply
    1. S
      Sidhartha
      Jan 11, 2017 at 8:22 am
      Look who is showering pearls of wisdom.Sacrificed national security as home minister,ruined the economy as finance minister,ran away from contesting the elections,son facing numureus curruption charges. And here he is giving expert opinions.
      Reply
      1. S
        Sidhartha
        Jan 11, 2017 at 8:25 am
        yes,experienced and intellectually sharp in how to divide and rule and how to loot the country.
        Reply
        1. D
          Dd
          Jan 11, 2017 at 1:01 pm
          Still much better than UPA scams. Any numbers for bank liquidity,i.e. Tax revenue...
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          1. H
            Haradhan Mandal
            Jan 11, 2017 at 10:29 am
            Cost at then end of 5 years will be a huge humongous figure. It is only 2.5 years. lt;br/gt;With huge amount with the Banks (and Banks already having 6 LAKH Crore PLUS as NPA - lost/stolen money) - Bank will be forced further to lend cheap loans to 'thieves' .lt;br/gt;And bulk of the money (if not all) is legitimate money (of legitimate people from their legitimate business/livelihood )- and it is now locked up (with the BANK) . At the same time - these people and economy are SUCKED out of WORKING CAPITAL - the lubricant of economy.
            Reply
            1. H
              Haradhan Mandal
              Jan 11, 2017 at 12:38 pm
              If you are educated, you should have known it - that he said so many times in the time of UPA-2 also. 2G scam - the figure by CAG is a "PRESUMPTIVE" loss. You understand what is PRESUMPTIVE. -"of the nature of a presumption; presumed in the absence of further information". lt;br/gt;For COAL - he said not a kg of coal was taken/stolen/lifted from the mines. It was only allocation - to be used for generating powers. PVT power plants will directly take coal from their own coal blocks (and not thru COAL INDIA etc) . NO BODY lifted one kg of coal because no POWER PLANTS WERE SET UP. And w COAL allocation is now under court.
              Reply
              1. H
                Haradhan Mandal
                Jan 11, 2017 at 12:18 pm
                Modi Bhakthas need Congress more than anybody else in this country. Whenever they bring congress in the discussion to defend themselves and/or for lack of arguments - it ONLY shows that they can not say anything in their defence and want to hide behind Congress. lt;br/gt;Corruption allegations have EXPIRY DATES, "USE by date" specially if you have come to the power on that allegation AND AFTER 2.5 years it STILL remains ALLEGATION and nothing beyond that.
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                1. H
                  Hindustan Hamara
                  Jan 11, 2017 at 12:19 pm
                  Mr Chidambram, estimate is conservative one ie 1% GDP loss. But most independent economists estimate it will be around 2-3%.
                  Reply
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