Indian economy would have collapsed, Modi’s demonetisation saved it, explains RSS ideologue S Gurumurthy

RBI independent director S Gurumurthy on Thursday once again said that India’s economy would have collapsed but for demonetisation.

Earlier too, Gurumurthy, who is currently serving as a part-time director of RBI has been very vocal on the benefits of demonetisation to the economy. (Image: PTI)

RBI independent director S Gurumurthy on Thursday once again said that India’s economy would have collapsed if it were not for Narendra Modi’s demonetisation. Gurumurthy, an RSS ideologue, said that the high denomination notes of Rs 500 and Rs 1,000 were being used to buy real estate and gold.

In a lecture at Vivekananda International Foundation, Gurumurthy said that in a one-and-a-half year period before demonetisation, Rs 500 and Rs 1,000 currency notes rose to 4.8 lakh crore. This is what funded the real estate and gold prices, Gurumurthy said, adding that India would have gone the same way as what happened to the US in 2008 due to sub-prime lending.

The co-convenor of RSS affiliate Swadeshi Jagran Manch also said it is unfortunate that economists and intellectuals have not taken the right position on demonetisation and GST, PTI reported.

Earlier too, Gurumurthy, who is currently serving as a part-time director of RBI has been very vocal on the benefits of demonetisation to the economy. He had repeatedly called it a ‘fundamental corrective.’ without which the economy would have been in doldrums.

A few days back the right-wing ideologue had discussed the scenario of the economy between 2004-2010 in a tweet: “……The growth driven by asst price rise led consumption fueled by withdrawal of capital gains tax was a mirage. Continuation of it would have been disastrous. DM was an inevitable purgative.”

He had also tweeted that in the given period, the stocks jumped 32 percent, gold 38 percent, land 21 percent, GDP 5.4 percent, inflation 4.5 percent and jobs 60 million, CAD over $20 billion in 1999-2004, the stocks rose 338 percent, gold 332 percent, and land 300 to 2100 percent, GDP 9.8 percent, prices 6.8 percent, jobs just 1.7 million, CAD $360 billion.  The noteban assisted in arresting the “asset price driven fake growth,” he had said.

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