Is disinvestment really that good for India or is a rethink in order?

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40 comments Page 2 of 4.

Pooja said:   9 years ago
Disinvestment in a controlled manner is good. As it will help the government to raise fund and bring in latest technology by making private players to contribute in GDP.

Samb29 said:   9 years ago
Disinvestment itself is not the pill to inefficiency in PSUs. Inefficiencies come from interference by govt authorities in operation abilities, lethargic workforce-- less incentive to work (undue influence, less employee care and favoritism in promotions) , improper skill development of employees, nonavailability of art of technology, and less freedom to work. For all this problems PSUs need to be given more autonomy (non interference) then, PSUs will become income generating assets of government for short term money requirement government is trying to this invest and this will not solve all the problems. There is no evidence that private organisations are resistant to collapse.

N k meena said:   10 years ago
To move economy from state economy to partially capitalistic economy is the part economic reform. Disinvestment is tools to provide autonomy in the economy that these effectively compete with international market standard and government burdon reduce in such a level that govt utilised the fund to mitigate fiscal deficit and added additional fund to plant development and critical areas.

Deena Queen said:   10 years ago
Hi Friends,

Disinvestment of PSU's have a psychological impact among the investors. It makes them feel that there will be a good return and it leads to higher investments. As far as our country is concerned, we have a non-opposing workforce regarding disinvestment. This eventually will help boosting the capital market.

Mona said:   10 years ago
Hello friends.

According to me disinvestment is good and crucial step of the government against inefficiency of PUSs.

We are investing in any sector or in any project with this expectation that we will get good and sound returns from there but when get negative response from there. We do not need to invest in such work.

Disinvestment is one of the good government's weapon which will provide the government that way which is necessary for our economy.

It reduces tension of huge investment in public sector.

With the help of this system government can better decision regarding social welfare of society because reduces government pressure at great extent.

With every decision has two side one is favourable and other one is unfavourable.

Disinvestment reduce the role of public sector and increases the role of private one by which economy of our nation moving towards inequality in society.

Manish said:   1 decade ago
Disinvestment is good up to a certain level because it generate huge funds & this fund could be deploy in social sector, subsidies & can reduce fiscal deficit as a revenue source & create good corporate governance but up to a certain level 49% as I think because above that level it direct economy towards private monopoly from state monopoly which is harmful for a country.

Sagar Bodkhe said:   1 decade ago
Undoubtedly disinvestment is good for our economy. Will definitely reduce the fiscal deficit. Which is one of the major concern of finance ministry today. The disinvestment commission was established with sole purpose of tackling the fiscal deficit problem. In early 90's when PSU's were giving negative returns. This will improve public-private participation in the PSU's. But what I think is that disinvestment should be kept below 50% to check the monopoly of the private sector in the fields directly / indirectly related to common man.

Sanjay Akhouri said:   1 decade ago
Disinvestment in PSUs would be a necessary boon in the present day fiscal deficit crisis which will also eventually suck excess liquidity from the economy thus check inflation. Further, the country can also meet the CAD if partially opened to FDIs thus support the depreciating Rupee. This will also help in good corporate governance and answer ability to stakeholders at large.

Pralad dessai said:   1 decade ago
Disinvestment is not beneficial for Indian economy. Investment keeps the India going. Investing in share markets, banking sectors, industrial sectors generates a huge capital in India. Indian population is dependent on its economy. So we must keep on investing funds in the economy to raise it to a sufficient level.

Poonam said:   1 decade ago
Hi Friends, According to me disinvestment is really necessary for India. India is a developing country so it needs resources for their developing from other countries. Disinvestment really help to reduce this. Government Use money which they will get from disinvestment for country growth. Poor people will get the advantage from this. But government try to not disinvestment in necessary resources like Oil, Sugar etc.

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