Note ban led to temporary economic slowdown, says President in R-Day speech

But he expressed hope that the move will improve the transparency of the economy

In his Republic Day eve address to the nation, President Pranab Mukherjee said demonetisation led to a temporary slowdown of economic activity, but expressed hope that the move will improve the transparency of the economy as more and more transactions become cashless.

In his address, the President touched upon several current issues, including the need to ensure the “well-being of our soldiers and security personnel who protect us from internal and external threats.” In recent months, soldiers and paramilitary personnel have complained about mistreatment and lack of proper food.

The President, whose five-year term ends this July, said India has notched up significant successes as an independent republic, “but we must acknowledge that our systems are not perfect.”

“Imperfections have to be recognised and rectified”, he said, and spoke about the need for electoral reforms, including simultaneous elections to the Lok Sabha and Assemblies. He expressed concern at legislatures losing sessions to disruptions when they should be debating and legislating on issues of importance.

Mukherjee said India’s pluralistic culture and tolerance are still being put to test by vested interests and reason and moderation should be the guide in dealing with such situations. He said India’s tradition has always celebrated the “argumentative” Indian; not the “intolerant” Indian.

He underlined the need for the economy to grow at over 10 per cent over an extended period to pull out the fifth of Indians who still live in abject poverty. The President stressed the need to provide youth with job opportunities.

“But we will have to learn to adjust our sails, quickly and deftly, to the winds of change. Evolutionary and incremental growth will have to accommodate rapid disruptions brought in by advances of science and technology. Innovation, more so inclusive innovation, will have to become a way of life.” The President said education will have to keep pace with technology. “In the race between man and machine, the winner will have to be job generation.”

The President said the Indian economy has been performing well despite the challenging global economic conditions. “In the first half of 2016-17, it grew at a rate of 7.2 per cent – same as that last year – showing sustained recovery.”

The President said Indian economy was “firmly on the path of fiscal consolidation and our inflation level is within comfort zone. Though our exports are yet to pick up, we have managed a stable external sector with sizeable foreign exchange reserves.”

He said three generations of citizens born in independent India do not carry the baggage of the colonial past, that it possibly takes freedom for granted but forget that the tree of freedom needs constant care and nourishment. He said democratic rights come with responsibilities which have to be discharged.

The President said that “we must make happiness and well-being of our people as the touchstones of public policy.” He said the quest for happiness is closely tied to sustainable development, which combines human well-being, social inclusion and environmental sustainability.