Industrialist Rajiv Bajaj on Friday blamed the government’s demonetization drive for causing a doubledigit degrowth for the industry and job losses. “The experience of Bajaj (Auto) has been no different from that of the industry as far as the demonetization is concerned,” Bajaj, who is the managing director of two and threewheeler major Bajaj Auto, told a TV channel in an interview.
“It (demonetization) has hit us hard, whether it is the motorcycle industry or the threewheeler industry. Especially so for the threewheeler industry which is cash dependent.” “There has been a doubledigit degrowth of the industry purely and directly as a result of this (demonetization).
I am personally, surprised that not enough people are standing up and saying anything.” Besides degrowth, Bajaj blamed demonetization for job losses. “A large supplier of mine who supplies to Bajaj and others like Yamaha and Honda told me in December that he alone had to let go 3,000 people as a result of downturn in demand across all his customers,” Bajaj pointed out. A day earlier, Bajaj had termed the demonetization drive a “wrong” idea.
“If the idea (demonetization) is not working, don’t blame execution. I think your idea itself is wrong,” Bajaj said at the annual Nasscom leadership forum which was held here on Thursday. On November 8, 2016, prime minister Narendra Modi announced the demonetization of Rs 500 and Rs 1,000 currency notes.
These were replaced by new notes of Rs 500 and Rs 2,000 denomination notes. As per the data available with the Reserve Bank of India, 84 per cent worth of total currency under circulation at the time of November 8 announcement was demonetized.