PM Narendra Modi spoke to ANI's Editor Smita Prakash about bringing back black money in the system and whether the Demonetisation hurt the BJP in the recent state assembly polls.
When asked about the effect of Demonetisation on the state polls and whether any objectives of the move were met, PM Modi said:
"There used to be regular reports about black money. There is no disputing the fact that a parallel economy was running, notes were found under beds, sacks full of cash were found. This parallel economy had made the country hollow. Demonetization has done a big job and in the coming days will set the country on the solid economic path.
"Those sacks full of cash have now entered the banking structure. An atmosphere of honesty has been created. The tax net has increased since earlier, won’t you call this a success? Currency circulation in comparison to GDP has reduced, this is a good indicator. If it continued like it did unabated, it would have been difficult to run things in the country," he said.
He also said that the Demonetisation was not a 'jhatka' (a sudden move).
"This wasn’t a jhatka. We had warned people a year in advance that we have a scheme wherein if you have such wealth (black money), you can deposit it, pay the penalties and you will be helped out. However, they thought that Modi too would behave like other governments so very few people came forward voluntarily. Through the media and the Parliament I beseeched people to take advantage of this scheme or else the government would have to take steps to change the situation. This hasn’t happened overnight, this process took 1 year… Only after that we had to take this step.
"This was necessary for the economic health of this country. If any process is changed, take for examples railways, if a bogey changes tracks there is a change in speed. We can’t deny this. Even when Manmohan Singh was Finance Minister, do you have any idea how much the GDP fell? It had fallen to approximately less than 2%. With change this happens but later things got stabilised. Now, even our growth rate has stabilized, a cleansing process was needed we did it. Now an ideology has been created for the country to head towards," he said.