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The Answer to The Impending Questions On Demonetization Are Here

While it did broaden the country’s tax base, it was a nightmare for the immense, cash-dependent informal economy.

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Indian Currency. Pixabay
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Nearly all of the currency removed from circulation in a surprise 2016 attempt to root out illegal hoards of cash came back into the financial system, Resever Bank of India  has announced, indicating the move did little to slow the underground economy.

Prime Minister of India, Narendra Modi’s currency decree, which was designed to destroy the value of billions of dollars in untaxed cash stockpiles, caused an economic slowdown and months of financial chaos for tens of millions of people or demonetization.

Modi announced in a November 2016 TV address that all 500-rupee and 1,000-rupee notes, then worth about $7.50 and $15, would be withdrawn immediately from circulation. The banned notes could be deposited into bank accounts but the government also said it would investigate deposits over 250,000 rupees, or about $3,700. The government eventually released new currency notes worth 500 and 2,000 rupees.

 

demonetization
An activist of Congress party hold the banned 500 and 1000 rupee notes.

 

In theory, the decree meant corrupt politicians and businesspeople would suddenly find themselves sitting on billions of dollars in worthless currency, known here as “black money.”

“A few people are spreading corruption for their own benefit,” Modi said in the surprise nighttime speech announcement of the order. “There is a time when you realize that you have to bring some change in society, and this is our time.”

But even as the decree caused turmoil for those in India who have always depended on cash — the poor and middle class, and millions of small traders — the rich found ways around the currency switch. In the months after the decree, businesspeople said that even large amounts of banned currency notes could be traded on the black market, though middlemen charged heavy fees.

demonetization
Prime Minister Narendra Modi along with mayor, flickr

The reserve bank of India report said in its Wednesday report that 99.3 percent of the $217 billion in notes withdrawn from circulation had come back into the economy. Some officials had originally predicted that number could be as low as 60 percent.

Also Read: Diverse Gathering To Be Addressed This World BioFuel Day: PM Narendra Modi

“Frankly, I think demonetization was a mistake,” said Gurcharan Das, a writer and the former head of Proctor & Gamble in India. He said that while it did broaden the country’s tax base, it was a nightmare for the immense, cash-dependent informal economy.

“You can’t overnight change that in a country which is poor and illiterate. Therefore, for me it’s not only an economic failure but a moral failure as well,” Das said. (VOA)

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India’s PSLV Along With 2 British Satellites Launched Successfully

Two satellites aboard the PSLV belong to Surrey Satellite Technologies Ltd (SSTL), UK, and is carried under commercial arrangement with Antrix Corp Ltd - the commercial arm of ISRO.

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Indian rocket lifts off with two earth observation satellites from UK
Indian rocket lifts off with two earth observation satellites from UK. Flickr

Indian rocket Polar Satellite Launch Vehicle (PSLV) lifted off successfully with two British satellites, NovaSAR and S1-4, from the rocket port here on Sunday night.

The PSLV-CA (Core Alone) version, standing 44.4 metres tall and weighing 230.4 tonnes, with thick orange flame at its tail lighting up the night skies rose up at 10.08 p.m. from the first launch pad.

The rocketport here has two launch pads.

PSLV
Indian rocket Polar Satellite Launch Vehicle  lifts off with two British satellites NovaSAR and S1-4, as seen from Chennai. IANS

According to the Indian Space Research Organisation (ISRO), after 17 minutes, 44 seconds following the PSLV lift-off, the two earth observation satellites will be launched into a 583 km sun synchronous orbit.

NovaSAR weighing 445 kg is a S-Band Synthetic Aperture Radar satellite intended for forest mapping, land use and ice cover monitoring, flood and disaster monitoring.

 

PSLV
Indian rocket Polar Satellite Launch Vehicle  lifts off with two British satellites NovaSAR and S1-4, as seen from Chennai on Sept 16. IANS

S1-4 weighing 444 kg is a high resolution Optical Earth Observation Satellite, used for surveying resources, environment monitoring, urban management and for disaster monitoring.

 

Also Read: ISRO Expects to Fly Its First Small Rocket Sometime Next Year

Two satellites aboard the PSLV belong to Surrey Satellite Technologies Ltd (SSTL), UK, and is carried under commercial arrangement with Antrix Corp Ltd – the commercial arm of ISRO. (IANS)