Comments by "" (@kallachi729) on "Unemployment in India high due to ‘ill-considered' demonetisation, says Manmohan Singh" video.

I am not even remotely qualified to discus matters of economy with our ex PM. But… An informal economy (informal sector or grey economy) is the part of any economy that is neither taxed nor monitored by any form of government. Although the informal sector makes up a significant portion of the economies in developing countries, it is labelled as troublesome and unmanageable which it is. It is true the informal sector provides critical economic opportunities for the poor. Integrating the informal economy into the formal sector is an important policy challenge. We have to encourage any Government that attempts to do that. India can never become a developed country with a large informal sector. The transition is a must for progress. Tail piece: Any churn in a system results in temporary flux.
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@freesoul3466 Thanks Srikanth. I too want the best for my country. I am not sure of the statistics. I also do not say that demonetization did not bring sufferings. Any change (1991, IT policy (Rajiv’s), GST etc…) will immediately provoke negative reactions. Some will suffer to recover. That is the hall mark of switching systems. My hand cart fruit vendor was back to his trade within days of demonetization. I understand all may not have come back so quickly. But since two years my ( I seldom visit departmental stores etc for daily needs…) milkman, grocer, snacks fellow, vegetable chap, handyman et al are on digital payment mode. Economists say that is better for the economy in near, medium and long terms! Regards
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