Das Backs Demonitization
RBI Governor Shaktikanta Das said, “I think demonetization has had a positive impact on the economy in terms of formalizing the economy, checking the so-called parallel economy/unaccounted money.” He also said that the Reserve Bank of India (RBI) hasn’t taken any stock of the impact of demonetization on sectors such as MSME.
In January 2020, the retail inflation spiked to 7.59%, which is the highest in 68 months. The country witnessed a sharp increase in vegetable prices, to which the RBI Governor said, “With this temporary spike in inflation, we have not shifted our attention from growth. We are still focused on growth.”. Finance Minister Nirmala Sitharaman recently had said that except for some perishable commodities, prices of most of the products are within the acceptable limits.
Speaking on the liquidity crisis in the country’s NBFC sector Shaktikanta Das said that the RBI wass closely and intensively monitoring the top 50 NBFCs which account for roughly 75% of the total NBFC portfolio.
He added by saying, “We are very mindful of the aspect of financial stability in the case of banks too. RBI will always ensure that stability of the banking sector is maintained.”
Swamy Slams GST
On the contrary, BJP MP Subramanian Swamy has described GST as ‘the biggest madness of the 21st-century’ and highlighted that the country needs a 10% growth per annum to become a superpower by 2030.
Calling GST a complicated regime he said India is facing a shortage of demand as people do not have money to spend which according to him is hindering the economic cycle. He also pointed out the need for new reforms and believes that India has not improved on the reforms that former Prime Minister Narasimha Rao had brought in.