Disinvestment Policy Explained Indian Economy in English By Pradeep Sir | UPSC CSE 2024

Disinvestment policy refers to a strategic economic approach where a government sells or reduces its ownership in public-sector enterprises and assets. The primary goal is to divest from non-strategic or underperforming entities, promoting efficiency, attracting private investment, and improving fiscal management. Governments may use disinvestment to raise funds, reduce fiscal deficits, and enhance the overall competitiveness of the economy. This policy often involves selling shares of state-owned companies through methods like public offerings or strategic sales. Disinvestment aims to create a more dynamic and competitive business environment while generating revenue and optimizing the allocation of resources within the economy.

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