DeMo paved way for monopolies by devastating MSMEs, informal sector: Rahul on note ban anniversary

New Delhi | Leader of Opposition in Lok Sabha Rahul Gandhi on Friday alleged that demonetisation has led to monopolies by devastating the MSMEs and informal sector and India continues to use more cash today than eight years ago.

The Congress' attack came on the eighth anniversary of demonetisation, with the opposition party saying it was the first shock the "non-biological PM" gave to the economy that led to the loss of momentum in the country's economy.

On November 8, 2016, Prime Minister Narendra Modi announced demonetisation in an address to the nation declaring that Rs 500 and Rs 1,000 notes would cease to be legal tender.

One of the reasons cited by the government at that time was to promote the digital economy and reduce cash transactions to check corruption and black money.

"India continues to use more cash today than 8 years ago when demonetisation was implemented

"DeMo paved the way for monopolies by devastating MSMEs and the informal sector," Gandhi said in a post on X.

Incompetent and ill-intended policies that create an environment of fear for businesses will stifle India's economic potential, the former Congress chief said.

"What is needed is a new deal that fosters fairness and freedom to unlock the energy of play-fair businesses across the country," he asserted.

Gandhi also shared a chart that shows how cash with the public fell from 11 per cent of GDP in 2013-14 to 8 per cent in 2016-17 and has now risen to 14 per cent of GDP in 2020-21.

The cash with the public is now 12 per cent of GDP in 2022-23, the chart showed.

Party general secretary, communications, Jairam Ramesh, in a post on X, said, "Today is the 8th anniversary of the first shock the non-biological PM gave to the economy, and the beginning of the economy’s loss of momentum."

"MSMEs were destroyed and millions of livelihoods were adversely affected. It was a Tughlakian move of disastrous proportions. Black money was not impacted at all and today more cash circulates in the economy than ever before," he alleged.

The Congress also said on its official X handle, "On this 'Black Day of Demonetization', we remember the hardships faced by millions of Indians."

"The abruptly introduced policy disrupted and strained the economy, leaving a lasting impact -- especially on the poor and the middle classes ever since," the opposition party said.

In another post, the party shared some of the stories of people who allegedly lost their lives during demonetisation. In another post, the party shared a video of some BJP leaders allegedly making light of those who lost their lives during the note ban.