Prime Minister Narendra Modi on Tuesday defended his decision to abolish high denomination bank notes that has left the economy reeling, calling it a "fight" for the poor.

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Modi`s comments came days before the start of a regional assembly election in Uttar Pradesh, a battleground state that is home to one in six Indians and will help in determining his chances of winning a second term in 2019.

While the decision to outlaw Rs 500 and Rs 1,000 bank notes late last year was part of a broader crackdown on corruption, the sudden withdrawal of 86% of currency in circulation had left businesses, farmers and households all suffering.

The chaos caused by the cash crackdown led Modi`s predecessor, Manmohan Singh, to describe it as "organised loot and legalised plunder" of the country.

In his first comments on the bank-note ban at a rowdy session of parliament, Modi shot back at his critics.

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In its annual budget last week, his government increased spending on rural areas, infrastructure and fighting poverty. It also halved the basic personal income tax rate and cut taxes on small firms that account for 96% of India`s businesses.

Analysts describe the Uttar Pradesh state election as a mid-term "referendum" on Modi as the cash crunch has inflicted the most pain on the poor. But Modi said he was championing their cause.

"We do not see everything from the prism of elections," he said in a speech during which he was repeatedly heckled from the opposition benches. 

"The interests of the nation are supreme for us."

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