Growing non performing assets (NPA) of banks and pressure from the finance capital were real reasons behind demonetization, said Shishir Gupta at an event on “Demonetization: Whose Gain from Whose Pain?” in Lamakaan.
Speaking in the discussion organized by Hyderabad-based forum ‘In Defense of Reason’ on Sunday, Shishir underlined that the black economy was only around 5-6% in cash form, while rest was in gold, real estate, shares and P-notes etc.
He noted that the massive move of demonetization was not justified to take this tiny portion out, instead the government could have focused on the rest 94-95% of cashless form if they were really interested in curbing the black economy.
He also spoke about the interchangeability of black and white money via routes like FDI, FII etc.
According to him, loot of labor was the biggest plunder in a capitalist economy and most of this loot was in form of legal white money so pro-people individuals must question capitalism instead of questioning only its symptoms.
During an open Q&A following the talk, participants aired their opinions. Some questioned the execution, while others questioned demonetization itself.