Demonetisation: Scars getting more visible with time, says Manmohan Singh

"It is often said that time is a great healer. But unfortunately, in the case of demonetisation, the scars and wounds of demonetisation are only getting more visible with time," he said in a statement.

"I urge the government to restore certainty and visibility in economic policies. Today is a day to remember how economic misadventures can roil the nation for a long time and understand that economic policymaking should be handled with thought and care," Singh, himself a noted economist, said.

Calling Prime Minister Narendra Modi's overnight ban on Rs. 500 and 1,000 notes on November 8, 2016, an "ill-fated and ill-thought exercise", Singh said "the havoc it unleashed on the Indian economy and society is now evident to everyone." The cash ban, he said, impacted every single person, regardless of age, gender, religion, occupation or creed.

"Beyond the steep drop in headline GDP growth numbers after demonetisation, the deeper ramifications of notebandi are still unraveling. Small and medium businesses that are the cornerstone of India's economy are yet to recover from the demonetisation shock," the former Prime Minister said.

"This has had a direct impact on employment as the economy continues to struggle to create enough new jobs for our youth. The financial markets are volatile as the liquidity crisis wrought by demonetisation is taking its eventual toll on infrastructure lenders and non-bank financial services firms. We are yet to understand and experience the full impact of the demonetisation exercise. With a depreciating currency and rising global oil prices, macro-economic headwinds are also starting to blow now."

The Congress has said that PM Modi should apologise to the nation for demonetisation.

Union Finance Minister Arun Jaitley, on the other hand, claimed that demonetisation has led to formalisation of economy, greater revenue earning and better quality of life for the common people.