demonetisation1And for a Friday in the midst of the most significant reform in Independent India…. Demonetisation…. some thoughts….

Everyone is unanimous that black money be eliminated and is supportive of the PM for his absolutely daring decision. But, as to be expected in such a vast and complex country like India which operates more than 50{aff5a224634bf574f692c8c7d068a0713fecca4ea38a30d3005107227dbb12e7} as a “Cash Economy”, with there being no Income Tax on agriculture and more than 90{aff5a224634bf574f692c8c7d068a0713fecca4ea38a30d3005107227dbb12e7} of employment in the unorganised sector, demonetisation has thrown up challenges.

Why don’t the leadership of all recognised parties agree to change the law on declaration of sources of income. Today more than 75{aff5a224634bf574f692c8c7d068a0713fecca4ea38a30d3005107227dbb12e7} of political funding is shown as coming from ‘less than Rs. 20,000’ donors. Hence no records and a fountainhead of corruption. Now is the opportunity to say we go “Cash less”…… only donations thru cheques can be accepted.

Illicit wealth earned thru bribery, tax evasion or thru other means is saved in gold, property, shares thru havala and hard cash. Only hard cash gets extinguished which is a hugely significant step. Hope action on others will follow.

Let’s all support the movement to a “Cashless” Society, not easy but definitely possible over the next few years. Meanwhile, each one of us must extend our helping hand to the very poor, labourers, daily wage earners, small time roadside hawkers, agricultural migrant labour etc. Help them with cash, food, help them open bank accounts in their native place or work place.

A quick dip stick survey by me. Situation has vastly improved after the new 500 Re note has been introduced this Sunday….. Dadar, Bhendi Bazaar, Chalai, Madiwala, Burra Baazar and all other “vegetable and flowers vendor markets” across India are back in action. Agricultural sowing is in full pace, 24 Mn Hectares sown (already surpassed last year’s acreage) with Seeds, Petrol, Govt Schools and Govt hospitals accepting old 500 Re notes. The rural economy is – well – almost normal.

Challenges are sure thrown up, maybe this Quarter, corporate results may show some decline. But if Political funding by black money is curtailed, investments in gold and property is streamlined by necessitating PAN, AADHAR and KYC….. well Indian Economy will bounce back.

Lets all mitigate the sufferings…. let’s all support nation building…. the SEEGOS way…..