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

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40 comments Page 3 of 4.

Vijendra said:   1 decade ago
Disinvestment is good idea to generate funds for government :

It will generate money to reduce fiscal deficit.

Govt. Can utilizes these funds for welfare of public.

It will improve efficiency and abilities of organisation.

Lose making PSU's will make profit.

Private sector have huge money to invest so it will improve infrastructure, technical efficiency.

It will change the attitude of lazy employees and will improve their efficiency.


Disinvestment should be avoided in the sectors which directly connected to common people like oil, sugar etc.

There should not be monopoly of private players.

Rajat said:   1 decade ago
Disinvestment is extremely important for the economy. Some of the advantages are.

1. Helps in generation of funds for the government.

2. Helps in turning around loss making units and thereby create greater value for the shareholders and customers.

3. Provides greater time and resources for the government for core activities which is governance of the people.

However, certain control must be exercised before going for disinvestment as government Is losing its control.

1. Strategic resources like oil should be controller by govt. As they are critical for economy and people of the country.

2. Also employees should be taken into consideration before disinvestment to allay all their fears.

Nitish said:   1 decade ago
Disinvestment is beneficial for us. In economic point of view it given opportunities to private sector to participate in it and also handle and controlled for healthy growing. In social point of view the investment of money in public sector is used for social development. So it helps to create development of human being and life standard.

Poonam said:   1 decade ago
Hi Friends, Now today's is the time of competition. Everyone is part of this competition. Private sectors are growing very fast to compete with them public sector are coming forward and result is public and private sector partnership is growing. Private sectors are making the stratgic plans and public sector are investing money in them for public growth. That is good but government should keep on eye the whole procee means private sector may not create monopoly for that process should be in favor of people not for big and rich people.

Neeraj bhatt said:   1 decade ago
Hello friends,

Disinvestment is good if we talk about India because of following reasons-.

1) Government will generate funds spontaneously if needed.

2) It will help poor in long run because government do disinvestment only in the hope of generating good returns which will be used for the improvement of the country in upcoming budgets.

3) As private owners will run the business it will be helpful for the infrastructure also as India's infrastructure is very much depends on private companies.

4) New technology will be used which will reduce the wastage of resources, presently which is not there in government comp.

Ashutosh singh said:   1 decade ago
Hello friends.

In this age of globalization it is very necessary that the companies must update with the latest technologies of the time because they have to face the top class products of the entire world, and we all very well know the amount of technological knowledge that he the Indian public sector posses.

Therefor I highly feel that a certain amount of controlled disinvestment policy is very important (which is in fact being followed by the in Indian government) as the private companies will bring the latest technologies and management practices with them which would help in the development of the enterprise.

Moreover, this measure will help the government to lessen it burden of managing the enterprise and focus on much important objectives.

One of the best eg. of such practice is the U.S. Where high level of public private partnership occurs.

Mukesh jha said:   1 decade ago
First of all I would like to say that disinvestment is done by the govt to get rid of equity problem. If govt have planned some proposal and he needs to inject some money to that particular project then some time govt might go through the disinvestment method to gather more and more fund.

So its helplessness of govt. Disinvestment is not good for the govt prospective. If govt will dis invest from any public sector unit due to emergence of fund. That will not only affect to govt profits but also help to corporate bodies to fetch more money in their pocket for their own sake. And if disinvestment will continue further that will lead to privatization which will not be good for our economy because they will monopolize the market.

Uttam kumar said:   1 decade ago
As i think if we understand the concept of disinvestment then definitely we will say we must do disinvestment.To understand clerly we take the example of insurence company, the money that we give as premium to them if they will not invest in other company then how they will generate profit.

Deepak.v said:   1 decade ago
1st we need to understand are we talking about fully disinvestment or partially because opinions differ in both cases. Partial investment is good irrespective of profit making psu or not if govt needs money & can't find any other effective way to raise funds as in current situation to meet the fiscal deficit govt has made a target of raising funds of Rs 40, 000 crore by divesting its stake in bhel, ongc & other psus & all are making profits & it is partial disinvestment so govt won't loose cntrl & anytym they can buyback when they get surplus of funds. & fully divestment is good when it is not govt's cup of tea.

Purushottam Vishnu Deshmukh said:   1 decade ago
Disinvestment policy is very harmfull to poor Indian as well as growth of inferastructure. This policy will establish monopoly of rich person. This is beganing of capitalist economy. Since it should be stop for general man.

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