Demonetisation Has Shrunk The Space For Action To Revive Economy

Former finance minister P Chidambaram believes Budget 2017 should find ways to promote private sector investment and boost consumption.

- N Madhavan

Even as the Indian economy emerges from the effects of demonetisation and the government tries to make a success out of the move, Congress leader P Chidambaram is not mincing words in attacking it. The former finance minister (FM), who has served the country longest in that role, calls demonetisation an ill-conceived measure and, in his view, one that will not achieve any of its stated objectives. In an email interview with Forbes India, he talks about the state of the economy, the prospects of implementing the Goods & Services Tax (GST), and what the broad contours of the forthcoming budget should be. Edited excerpts:

Has demonetisation been a well thought-out move? Will it achieve its stated purpose?