World Bank Fond of PM Modi’s Demonetization Reform

Hit Brother

7 years ago

On a day when Ex-PM Manmohan Singh predicted the “worse is yet to come” for Indian economy after demonetisation, PM Narendra Modi’s maverick move received a thumbs-up from World Bank.

This is getting as confusion as days are passed. Prime Minister asked for 50 days from the people of India to settle the impact of demonetization. But still I am seeing lines outside the ATM and still the limit from ATM cash withdrawal is just INR 4500.

World Bank praises the reform but what if it is just to hide the situation which created due to demonetization. Former Prime Minister Manmohan Singh and renowned world economist, whose liberalization policy and FDI changes the life of Indian society. The Youth of India having lot more opportunities than the youth before 1995. If he is saying that worst yet to come then what he really wants us to focus.

Singh is the member of Indian National Congress and at present, the congress is the opposition party that means he may never speak in the favor of present government.

In New Delhi on Wednesday, Singh dubbed demonetisation as a “disaster” and predicted things were going from bad to worse. “Demonetisation has hurt the country. Things have gone from bad to worse, but the worse is yet to come,” he said.

Singh slammed PM Modi’s claim that economic situation is improving after demonetisation. He said the claim was “hollow” and “Modi’s propaganda”. “We now know the beginning of the end has come.” In his brief address, the former PM reiterated what he had said in Rajya Sabha last month, quoting “some rating agencies” that the GDP could slow down to 6.6

However, a World Bank report released on Wednesday said otherwise.

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“A benefit of ‘demonetization’ in the medium term may be liquidity expansion in the banking system, helping to lower lending rates and lift economic activity,” the report said while forecasting India’s growth as “still robust”. It said growth in India is estimated to reach 7.0 percent in the financial year ending on March, 31 2017. This is a reduced estimate from the previous 7.6 per cent growth forecast for this year.

World Bank, is the prime bank of the world and supports countries to grow and sustain with their policy. It is very optimistic towards the PM Modi demonetization reform.

The report predicted that growth in India would regain its momentum “with growth rising to 7.6 percent in the financial year 2018 and strengthening to 7.8 per cent in the financial year 2019.”

The report also said that reform activities taken by Modi government would “unlock domestic supply bottlenecks and raise productivity.” Such as: a) infrastructure spending would improve business climate and attract investment in the near-term. b) “Make in India” campaign may support the country’s manufacturing sector, backed by domestic demand and further regulatory reforms. c) Moderate inflation and a pay hike as per 7th Pay Commission recommendations would support real incomes and consumption.