HYDERABAD: Responding to Finance Minister T Harish Rao’s claim that demonetisation was an ‘utter flop,’ former MP Boora Narsaiah Goud on Wednesday said that the scrapping of Rs 500 and Rs 1,000 currency notes by the Modi government was in fact beneficial to the economy.
Narsaiah Goud said that demonetisation led to India becoming the fifth largest economy in the world, which Morgan Stanley expects to become the third largest by 2027.
Addressing the media at the BJP party office in Nampally, he said that the immediate effect of demonetisation was an increase in the deposits of Jan Dhan accounts, with 32.25 crore accounts opened with an outstanding balance of Rs 80,674.82 crore. This resulted in bringing down the bank interest rates, he said.
Another result of demonetisation, according to Narsaiah Goud, was an unprecedented growth in digital transactions. “In 2022 alone, UPI processed more than 46 billion digital transactions amounting to more than Rs 84 lakh crore,” he said.The former MP said that while the GDP of India in 2022 was US$ 3.468 trillion, as per IMF and World Bank’s predictions, by 2027 it could reach US$5.365 trillion.