BJP Sitting MP and RSS leader Subramanian Swamy told the CNN-News18 channel in an interview that the economy was in a “tailspin,” warning that it could be moving towards a depression.

Special Correspondent

The staunch supporter of demonetisation ., RSS Policies propaganda vernacular tamil magazine thuklaq Editor Mr. Gurumurthy was speaking on ‘Demonetisation – Its role, Impact and Follow-up,’ at an event organised by the Chennai International Centre at the Madras School of Economics.,

“Too many disruptions, too soon. This is one of the things which a government in urgency is doing. Demonetisation, NPA rules, bankruptcy law, GST, thrust against black money — everything at one stretch; commerce cannot absorb all this,” he said.

Mr. Gurumurthy, who said, “I have not come here to defend the government,” opined that despite its many benefits, demonetisation was implemented badly. He claimed that due to a communication error between the Finance Ministry and a confidential cell, black money holders escaped the demonetisation dragnet.

Mr. Gurumurthy said the withdrawal of cash crippled the informal sector, which generated 90% of jobs and satisfied 95% of its capital requirements from outside the banking system. As a result, he said, “Aggregate consumption and generation of jobs have stagnated. The informal sector now borrows at 360-480% interest. It is already dealing a big blow to our growth and will continue to do so.”

It is to be noted Gurumurthy had not only defended but praised demonetisation move when he denied Former Prime minister Manmohansingh prediction that GDP will fall by 2%.

In his reply he accused congress is root cause of all problem and also had as said that the currency replacement drive was a correction undertaken by the Narendra Modi government to overcome the ‘monumental mistake’ committed by the UPA government from 2004 to 2010 in ‘not checking’ the “tsunami of black money” that drove up the prices of stocks, gold and real estate.

However Post demonetisation Economic indicators has proven Manmohan singh prediction turned accurate.