Demonetisation has been inferior for the Indian economic system and High Minister Narendra Modi’s commitment to market economic system is below a shadow of doubt, American economist Lawrence H. Summers has said, on the first anniversary of the controversial exercise. Mr. Summers, meanwhile, praised the Items and Companies Tax (GST) as a “favourable step” for the nation’s economic system.
He used to be talking to The Hindu on the sidelines of a lecture he delivered on rethinking world pattern for the 21st century, on the Heart for Global Trend, a accept as true with tank working on world poverty and inequality.
‘No longer a model’
“I am pretty sceptical of the Indian demonetisation exercise. It regarded as if it may per chance me, anyone arbitrarily undermining self belief in the predictability of the financial machine… it didn’t hit the wealthiest other folks in India, and it had a bigger affect on greater center class. I’m now not an knowledgeable, but I don’t accept as true with Indian demonetisation is a model for other countries to take a look at,” the economist said. Mr. Summers, now Professor and President Emeritus at Harvard University, served as Secretary of the Treasury for President Bill Clinton and the Director of the National Financial Council for President Barack Obama.
Requested how the rest of the realm perceived Mr. Modi’s reform agenda, Mr. Summers said: “Tax reforms [GST] used to be a in truth favourable step, there used to be some development on infrastructure components.”