16 lakh crores have been demonetised.
Our printing presses (4) have a total capacity to print 2100 crore notes ANNUALLY.
Even if they print 2100 crore notes in denomination of 2000 - it will take atleast 5 months to replace 16 lakh crores.
If replaced with 500 rupee notes, it will take atleast 1.5 years to replace. So how does the government guarantee that problem will get over in 50 days?!!!
The interesting foot note is that printing press at Dewas does not have sufficient printing ink and has floated tenders inviting suppliers.
But, we cannot replace with 2000 and 500 notes because everywhere we need notes of smaller denomination. So, you dont need to be a genius to understand that this problem will take at least another year to two years to become manageable. People have money but they dont have cash to spend.
In the meantime, our GDP for OCT, NOV, DEC will be almost ZERO and our GDP for this year will come down from 7 to around 5 percent!!!! We have industries who have orders, contract employees, money in bank but still cannot pay their employees. Lets take a factory with just 15 employees who are paid 15000 a month. The employer would need 3 lakhs to pay just salaries. But he is allowed to take only 50000 a week - i.e 2 lakh a month. Now, you might understand the magnitude of the problem. I dint talk about 1000 employees....
Out of 120 crore indians, almost 100 crore are running after banks and ATMs. Even if everyone is losing a minimum of 250 rupees loss in productivity - India is suffering 25000 crores loss everyday. Its been 12 days already - so roughly a loss of 3 lakh crores!!! Govt gets a revenue of 50 Crores from toll booths. 12 days of NO TOLL - the loss in revenue is 600 cr.
If the Intention was really attacking black money - the attack should have happened on the top 5 to 10% people who control 90% of India's black money. Bulk of the black money is with politicians and builders.
Yesterday my sister got angry with me for criticising this Modi move. I cannot see this issue only through emotions but through facts and analysis. I cannot agree with a fascist view "either you are with us or you are against us" - there is a vast grey area where 80% of people reside. While i support this strong action of our PM Modi, I wish he had planned this through without affecting the common man in such a severe way forcing almost every poor person to become a beggar.
Our printing presses (4) have a total capacity to print 2100 crore notes ANNUALLY.
Even if they print 2100 crore notes in denomination of 2000 - it will take atleast 5 months to replace 16 lakh crores.
If replaced with 500 rupee notes, it will take atleast 1.5 years to replace. So how does the government guarantee that problem will get over in 50 days?!!!
The interesting foot note is that printing press at Dewas does not have sufficient printing ink and has floated tenders inviting suppliers.
But, we cannot replace with 2000 and 500 notes because everywhere we need notes of smaller denomination. So, you dont need to be a genius to understand that this problem will take at least another year to two years to become manageable. People have money but they dont have cash to spend.
In the meantime, our GDP for OCT, NOV, DEC will be almost ZERO and our GDP for this year will come down from 7 to around 5 percent!!!! We have industries who have orders, contract employees, money in bank but still cannot pay their employees. Lets take a factory with just 15 employees who are paid 15000 a month. The employer would need 3 lakhs to pay just salaries. But he is allowed to take only 50000 a week - i.e 2 lakh a month. Now, you might understand the magnitude of the problem. I dint talk about 1000 employees....
Out of 120 crore indians, almost 100 crore are running after banks and ATMs. Even if everyone is losing a minimum of 250 rupees loss in productivity - India is suffering 25000 crores loss everyday. Its been 12 days already - so roughly a loss of 3 lakh crores!!! Govt gets a revenue of 50 Crores from toll booths. 12 days of NO TOLL - the loss in revenue is 600 cr.
If the Intention was really attacking black money - the attack should have happened on the top 5 to 10% people who control 90% of India's black money. Bulk of the black money is with politicians and builders.
Yesterday my sister got angry with me for criticising this Modi move. I cannot see this issue only through emotions but through facts and analysis. I cannot agree with a fascist view "either you are with us or you are against us" - there is a vast grey area where 80% of people reside. While i support this strong action of our PM Modi, I wish he had planned this through without affecting the common man in such a severe way forcing almost every poor person to become a beggar.
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