The demonetisation drive rolled out by Indian Prime Minister Narendra Modi for flushing out corruption from the indigenous monetary system back on 8th November 2016, have been given the “failure” tag by Reserve Bank of India. The Hindusthan Times, an Indian newspaper reported that Reserve Bank had been at the receiving end of 98.6% of the total scrapped notes. Such high return percentage depict that tax evaders, drug dealers and others associated with large scale money laundering have passed the demonetisation test with flying colours without getting caught under the government’s radar.Prices and popluarity of Bitcoin in India skyrocketed during demonitisation.
Indian government wished to bring along benefits to poor and middle class people who were the worst sufferers of the pangs of black money. Their action plan also targeted to bring much more regulations into the formal economy and reduce tax avoidance. The short term pain caused by this demonetisation injection was aimed at curing our society from terminal illness like terrorist activity financing. The Indian people reciprocated to Narendra Modi’s calls as he placed him as an anti-black money crusader amongst masses.
But the recent revelation by Central Bank has got the same leaders shift gear from aggressive to damage control mode with Finance minister Arun Jaitley taking centre stage. As per information published by Firstpost, about 19% hike in direct tax collection has been reported in between April and July in comparison to 2016. 300000 companies have also been brought under scanner and the government has mined out 37000 shell companies from the rabbit hole who have been notoriously hiding black money. With such statistics, the soft spoken finance minister still feels that they have been successful in wiping out terrorism funding and bringing upon a cashless economy.
Also Read: Notable Growth of Bitcoin in India, says Finance Minister
Coming to GDP scale, India’s growth in the first quarter slowed down to just 5.7% which is the lowest in three consecutive years. The main reason behind the same was turbulence in manufacturing, mining and construction sectors.
But Indian government’s pain has been the gain of Bitcoin in India with more and more people shifting base to this cryptocurrency form as a safe haven of financial assets. The failure of demonetisation experiment increased the demand of Bitcoin in India and encouraged mass adoption of the same in Indian subsoil.
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