BS EDIT: India’s disinvestment drive has lost momentum

By Business StandardPublished On Feb 11, 2025

The Changing Budget Strategy

The Union Budget now sets broad capital receipt targets (Rs 47,000 crore) without detailing disinvestment goals, reflecting a shift in approach

Disinvestment Targets Missed

Despite high targets, actual disinvestment receipts remain low—less than Rs 10,000 crore so far this financial year

Privatisation Stagnation

After Air India and Neelachal Ispat sales in 2022, major privatisation efforts have stalled, with little progress on strategic disinvestment

The IDBI Bank Delay

IDBI Bank’s disinvestment lags despite investor interest, highlighting the government’s slow follow-through on announced plans

Contradictory Actions

Instead of selling loss-making firms like Visakhapatnam Steel Plant, the government is investing taxpayer money for their revival

Why It Matters

With fiscal pressures mounting, disinvestment could support capital expenditure without raising taxes—reviving this agenda is critical