The recent RBI report on demonetization and high GDP growth recorded for April-June quarter are expected to become big political issue in the 2019 general election. As per the RBI annual report for 2017-18, 99.3 per cent of the junked Rs. 500 and Rs. 1,000 notes have returned to the banking system. The report shows that only miniscule percentage of currency was left out of the system after the government’s unprecedented note ban aimed at curbing black money and corruption. The opposition parties have launched scathing attack on government over the RBI report.
If majority of notes are back to bank, where is the so called black money? People of India especially poor had to face torrid time due to demonitisation. Everyone supported the move of government with the hope that it will unearth black money and help the country in the long run. But RBI report has shocked the citizen and there is growing anger. With general election around the corner, this will further escalate into major political issue. But just as opposition were beginning to corner government on economic front, came the news of India’s GDP growing at 8.2 per cent in the April-June quarter. This was a huge relief for the government of India. To puncture opposition’s attack on economic front, govt will definitely cite the GDP figure. However unless high GDP growth helps to create job and accelerates the economic development of country in true sense, it will not count much.