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

Group Discussion
Points to remember before you participate in this discussion:
  • Assume you are one of the members of a real group discussion.
  • Take the initiative to participate and contribute your thoughts.
  • Contribute your positive thoughts towards providing the solution.
  • Post your thoughts here.
40 comments Page 3 of 4.

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.

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.

Chiranjit said:   1 decade ago
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.

Soumya Gupta said:   6 years ago
Yes, after initiating NEP policy in India has a good impact in our economy. The earlier producer oriented market was in operation but now the consumer-oriented market is in operation. Manufacturer starts hiring expert labour who has good command new machinery. Competition level also increases from national to international level (globalization).


Chetan said:   1 decade ago
Disinvestment should not be done totally, government should enter in to public private partnership where strategic decision making should be left to private players and funding part should be left to government this will not create monopoly of the private players as government would be monitoring body to protect interest of the society and nation.

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.

Deena Queen said:   1 decade 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.

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.

Aditya Saraf said:   1 decade ago
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.

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.

Post your thoughts here:

Your comments will be displayed after verification.