Demonetisation led to monopolies, devastated MSMEs, informal sector: Rahul

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.

His attack came on the eighth anniversary of demonetisation.

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.