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

Disinvestment may help infuse funds which can reduce CAD. But government gets robust funds from the investment in PSUs.

In 2015-16, it is expected that government is to receive Rs. 36000 cr from dividends. That amounts to the half of the annual disinvestment target for 2015-16. And that to with such an inefficient PSUs. Stake sale can definitely reduce this income.

So, focus should be on to improve the operational performance of PSUs n not on the stake sale. Government of India should treat them as growth engines.

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.

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.

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.

I think disinvestment is not good. Find out what is the reason for disinvestment and try to solve the problem. If not then country like India a developing nation can not grow. Govt should think about the ppp model as private sector can handle evrything properly so to help in economy and increase thew contribution in gdp we should focus more investment rather disinvestment.

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.

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.

Disinvestment is instrument which is used well will certainly be benevolent for the economy but on the other side too much divestment will cause unfavorable monopoly in the market.

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.

Disinvestment is also a good techniquue to cover the fiscal deficit of the Goverment. The Goverment can cover up the difference of deficit by the process of disinvestment.By this process the loss making companies of India can be revived very soon and the this will also held in growth of the GDP.