Demonetisation, Genius or Lunacy

Demonetisation drive undertaken by Prime Minister Modi is akin to  removing most of the circulating blood, that has become bad, from human body and then perfusing new blood. This is a major surgery. Doctors do it under anaesthesia. Mr  Modi has undertaken his operation of removing 85% of circulating currency notes in a living breathing patient without anaesthesia. In such a major operation when blood is pumped out, a lot of tissue dies. New cells and tissues need to regenerate as new blood is pumped in. Indian economy will also have a lot of collateral damage. Unorganised sector will be severely affected. The new clean economy has to regenerate from the ruins. May be government wants just that. 
Sheer magnitude and audacity of demonetisation move is mind boggling. It can be a game changer or a total bust. Prime Minister has put his chair at stake. Only a sheer genius or a pure lunatic can attempt this move which is akin to Produnova vault of Deepa Karmakar. You may get a medal if successful, if you fail you may die. But that is Gujarati spirit. There is no middle ground. Either boom or bust. Like all other leaders of the past, Mr. Modi could have taken a gradual approach. But it would have taken probably another 50 to 100 years for India to go digital. Mr. Modi wants to do it in his remaining 2.5 years. He is literally dragging, kicking and screaming, a reluctant nation.

Political opponents of Mr. Modi are still playing the old game. They are accusing Mr. Modi. Calling him names. Some trying to be saviour of the poor. No wonder, the traditional noise is not gaining much traction. To fight Modi, one has to be inventive, imaginative and move to another level, qualitatively. But other than Nitish Kumar and Naveen Patnaik, no body has supported Mr. Modi. May be both Mr. Nitish Kumar and Mr. Patnaik understand the magnitude of the problem and share similar vision. Or they may be giving Mr. Modi a long rope to hang. In the end when dust settles, both Mr. Kumar and Mr. Pattnaik will likely come out as politicians who stood against corruption. 

Only people of India can defeat Mr. Modi. That is why Mr Modi is appealing to people. So far people have been listening. I hope Mr. Modi has more cards up his sleeves for the next round. Time will tell.

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