Public Sector Disinvestment And Its Impact On Economic Growth

Abstract

Following economic liberalization in India, the policy of disinvestment in Public Sector Undertakings (PSUs) has been regarded as a crucial component of economic reforms. The primary objectives of disinvestment are to alleviate the government's fiscal burden, enhance the efficiency of public enterprises, and encourage private sector participation. The aim of this research paper is to examine the process of public sector disinvestment in India and to analyze its impact on economic development. The study reveals that disinvestment has a positive impact on government revenue growth, improvements in industrial efficiency, and the development of the capital market. Furthermore, it was observed that issues such as transparency, social security, and the protection of workers' interests are also critical aspects of the disinvestment process.