BS EDIT: Revive disinvestment to sustain India’s capex push

By Business StandardPublished On Jan 20, 2026

Fiscal discipline has improved

The fiscal deficit has declined steadily since the pandemic, alongside better spending quality

Capital expenditure has driven recovery

Public capex has supported growth but needs stable non-debt funding

Disinvestment is the missing link

Disinvestment receipts remain modest despite stated policy intent

Unlocking value without raising debt

Lower government stakes in PSEs can fund capex while limiting borrowing

Market conditions are favourable

Deeper equity markets make stake sales and listings easier

Reform momentum needs credibility

Faster disinvestment would strengthen reform signals and business confidence