Disinvestment of Public Sector Enterprises (PSEs) and Fiscal Deficit Tackling in India


  • K. A. Aneesh Research Scholar, Centre for Economic Studies and Planning (CESP), School of Social Sciences (SSS), Jawaharlal Nehru University (JNU), New Delhi, India


Disinvestment, Privatization, New Economic Policies, Public Sector Enterprises, Fiscal Deficit


Every year since 1991, the Central Government of India has been successfully disinvesting its PSEs from various sectors. The recent announcement to strategically disinvest some of the better performing PSEs like Life Insurance Corporation of India Ltd., Air India and so on is indeed shocking. This seriously questions the intension of the government towards the declared objectives of the disinvestment strategy in 1991. There are severe apprehensions on selling-off the PSEs at a lower price and the utilization of disinvestment proceeds for filling the revenue deficits of the Central Government. This paper discusses the idea of disinvestment in India and the debates associated with it. The paper also critically analyses the disinvestment proceeds in India as a tool to tackle mounting fiscal deficits after the initiation of the New Economic Policies in 1991.


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How to Cite

Aneesh, K. A. (2020). Disinvestment of Public Sector Enterprises (PSEs) and Fiscal Deficit Tackling in India. Asian Journal of Managerial Science, 9(2), 11–17. Retrieved from https://ojs.trp.org.in/index.php/ajms/article/view/1644