Ahmedabad, Nov 8 (DHNS): The scrapping of Rs 1,000 and Rs 500 banknotes on November 8, 2016, was a "black day" for India's economy and democracy, former prime minister Manmohan Singh said here on the eve of the first anniversary of demonetisation.

In separate interactions with traders and journalists on Tuesday, he launched a rare, all-out attack on the Union government under Prime Minister Narendra Modi whose home state Gujarat goes to the polls on December 9 and 14.

Describing demonetisation as an "ill-thought-out action", he said nowhere in the world had any democracy taken such a "coercive step". His latest remarks were a reiteration of his statement in the Rajya Sabha last year that demonetisation was an "organised loot and legalised plunder." He stressed that demonetisation had only helped China whose exports to India surged this year by Rs 45,000 crore to reach Rs 2.41 lakh crore.

The veteran Congress leader also found fault with the Goods and Services Tax (GST) regime, saying there were several loopholes in it. "The problem is not just about multiple rates but there are loopholes," he said and added that his government had a well-designed GST but "Modiji opposed it".

Singh stressed that the government should have stuck to the top ceiling of 18% with just one or two rates and carried out a dry run. He said implementing the GST after demonetisation had broken the back of small businesses in states like Gujarat and created a deep-rooted feeling of "tax-terrorism" among businessmen in the country.