Global business realities might be big challenge to govt's privatisation plans


Published On: Monday, February 10, 2020 | By:

Global business realities might be big challenge to govt's privatisation plans

The budgeted increase in asset sales is undoubtedly a win-win for GOI and can help balance the twin objectives of macroeconomic stability and growth. But Asset sales underperformed significantly in FY 2020 (0.3% of GDP, compared to a target of 0.5%), yet are pegged at even more ambitious levels for 2020-21 (0.9% of GDP).It is tough to argue against govts efforts to steer the stuttering economy towards a more productive path through privatization.Perhaps, as a crisis response to shore up resources or plug the gnawing budget deficit, the decision to cash out of airlines to oil refineries, coal mines to shopping lines, and railway freight is both politically bold and fiscally pragmatic. But as we see the fine print and unrealistic time table, especially in the backdrop of shifting global business landscape, it becomes evident it is very difficult to the targeted sell off of coal mines,oil industries and airlines in the changing global business scenario

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