The country suffered a huge crisis after this unexpected announcement which was being seen in the sudden decline in the GDP of 1.5 percent.
It also led to liquidity shortage resulting in small business units taking the brunt.
While speaking to Eenadu India, Aamirullah Khan, economist, said, "Many economists including RBI has also admitted that it is such a big failure. Because of demonetization loans are bad, cash is bad, loan collection has gone down, unemployment has increased, inflation has gone up, exports have suffered and nothing has happened to counterfeit mode to terrorism."Read | Demonetisation was an ill-conceived move: Chidambaram
Giving an example of Chhattisgarh maoist attack, he says that it is ironical that the incident happened on the second anniversary of demonetisation. Curb financing of terrorism was one of the objective of demonetisation, which the government failed to do.
Aamirullah further added that demonetisation is a unique example to him as it is imposible to think of any good coming out of it.
As today, the opposition parties asked for an apology from the PM. Finance Minister Arun Jaitley clarified about the government's decision through a post. Where he explained the positive impact of demonetisation upon the Indian economy.
However, Aamirullah Khan disagreed with the statement, saying, "The statement by the finance minister is a very desperate attempt to justify the step.The numbers are showing a different picture.
There is no jump in the tax recovery as well as in the number of direct tax payers.
The trend is similar to what was happening without demonetisation. MSME sector was being hit by demonetisation at the most and that is why export suffered and even unemployment increased after that."Read | Demonetisation protest: Police detain Congress leaders
On the other hand, Anuraag Sunder, economist, explained that in it's initial stage demonetisation impacted in a negative manner upon the economy of the country as it created unemployment, affected these small businesses and made people suffer while standing in long queues outside the ATMs, but later on, it shows many positive signs.
He said, "A lot of formalisation of the sectors has happened specially in the MSME site which has always been characteristically in the informal economy. Digital economy has become a reality because of digital intake of money."
Anuraag Sunder said "The immediate impact of demonetisation was very brutal. But in the last two years, the major turn has happened which made our economy more formalized. In India, only 2% people are paying taxes. If the tax bracket can be spread, then more people will be brought into it who will participate more in nation building. Through demonetisation, India has moved forward towards the digital economy".