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

Disinvestment is good as it helps in listing of goverment enterprises on stock exchanges which will ultimately led to improvement in corporate goverance,higher disclosures levels which will bring transperency and accountability in functioning and adding market discipline to it.

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.

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.

Disinvestment of public sectors is good option only if it is running in loss. Disinvestment will help a psu in gaining the technological knowledge from the private sectors and learning their strategies in earning profits. Otherwise the percentage share of the government should always be more than 50% as it is the government which is inclined towards the betterment of the people, society and development of backward area and removes economic differences.

No doubt disinvestment will bring good managers and help the company to improve the sale but the government should keep some points in mind.

No matter how much loss a company has beard, government should have some stakes so that they can figure out the positive changes. Next the private company should not indulge in monopoly. Government should share the insights of the deal to gain the confidence of the employees. We should keep in mind the consequences of what happened in BALCO.

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.

When disinvestment comes in a mind that obviously means the company or sector is going through losses because of competitors or some other aspects so it is better to divest than completely lost and make it useful in other beneficiary sectors.

In todays era of globalisation and competition, if public sectors have to survive they have to evolve. And to evolve and be competitive enough with the private sectors and global players we need to be at par with them on many aspects viz marketing technology, cost effeciency, strategic colaborations etc. In absence of this the public sectors are bound to become obsolete, loss making and then sick.

Disinvestment allows private player havin the knowledge of the sector comes in the board and help the company take actions which will make it feasable project which was other wise loss making.

And might suggest for technological innovation.

And might infuse new good managers who can motivate the work force to work effectively and efficiently. And therby contributing toward the growth of the company.

It is a brilliant initiative being taken by government of India.

Disinvestment is good to improve effeciency and operational abilities of the firms. It will leave the Government to focus more on its core responsibilities of public welfare and safety.