Falling net FDI levels, it says, were driven by rising repatriation due to foreign investors realising higher returns on investments due to surging stock market.
Ministry of Finance also informed Parliament that from 2023-24 onwards, it has stopped providing targets in budget for how much it expects to receive through disinvestment.
While CPSE closures have tripled, new companies are coming up too. With profits & dividends being balanced by low disinvestment proceeds, question is whether govt’s strategic shift is working.
Scrapping the latest version of the Consumer Expenditure Survey, or denial on China dependence reveal the govt's signs of immaturity that are hard to ignore.
Years of high disinvestment led to public sector company stocks falling even when overall markets were rising. Govt’s easing back on disinvestment has helped turn this around.
At current market capitalisation levels, if govt reduces stake in listed companies to 51%, it can earn Rs 1.7 lakh cr from non-financial companies & Rs 1.8 lakh crore from financial ones.
Govt has earned Rs 4.48 lakh crore from disinvestment since 2014. With inflation factored in, this still represents 57% of all disinvestment proceeds since 1991.
Centre expected to raise Rs 65,000-cr through disinvestment & privatisation of state-run firms this financial year. Govt official says move aimed at ensuring resources aren't wasted.
The collusion between the new class of bureaucrats, politicians, businessmen and trade union bosses perpetuates itself partly because of the short-run benefits and partly because they see no way out of the system, wrote author MH Mody in 1980.
IAF is firming up plans to revamp airlift capabilities with medium transport aircraft that will be assembled in India & serve as its main workhorse. Embraer is leading contender as of now.
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