Disinvestment in India Explained
Disinvestment is the process by which the government sells or dilutes its stake in public-sector enterprises (PSUs).
Disinvestment is the process by which the government sells or dilutes its stake in public-sector enterprises (PSUs).
Types
Minority disinvestment sells a small stake while the government retains control; strategic disinvestment (privatisation) sells a controlling stake and hands over management to a private buyer.
Objectives
Disinvestment aims to raise revenue, improve efficiency, reduce fiscal burden and broaden ownership. A dedicated department (DIPAM) manages the process.
Why it matters for UPSC
The types of disinvestment (minority vs strategic) and its objectives are commonly tested Economy topics.
Practise related UPSC PYQs
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Practise PYQs →Frequently asked questions
What is strategic disinvestment?
Selling a controlling stake in a PSU along with management control to a private entity.
Which department manages disinvestment in India?
The Department of Investment and Public Asset Management (DIPAM).