What is meant by dis-investment? Give reasons for and against dis-inve

Question

What is meant by dis-investment? Give reasons for and against dis-investment in India.

11 Sep 2024

Answer :

Word Count : 581

Meaning of Dis-investment

Dis-investment refers to the process of selling or liquidating assets, particularly equity shares, held by the government or public sector enterprises (PSEs) in companies. In India, dis-investment often pertains to the government's strategy of reducing its stake in state-owned enterprises to foster efficiency, reduce fiscal burden, and encourage private sector participation. This strategy is distinct from privatization, which involves transferring ownership of a company from the public sector to private hands, though dis-investment can be a step towards privatization.

Reasons For Dis-investment

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