GST revamp to boost demand, investment and jobs: FM
Sitharaman Shifts Gear to Disinvestment After GST Push
Alongside, she also pointed to the need for monetising underutilised assets owned by these enterprises—an area she believes can significantly unlock value for the economy.
“I need to press the pedal on disinvestment. And I will be working on it,” she said candidly, reflecting both urgency and determination. “There is no new agenda, but the existing agenda that, because of various reasons, went into slow motion. I’ll have to see what the best way is to revive and bring them on track.”
The minister’s comments mark a clear shift in policy focus. Over the past year, the finance ministry had concentrated heavily on stabilising GST collections, fine-tuning compliance measures, and ensuring that states receive their due shares on time.
India has long struggled with extracting optimum value from its state-owned enterprises. Many of them hold sprawling assets—land, infrastructure, and capital—that remain underutilised. Others face inefficiencies in governance, making them less competitive in today’s fast-moving global economy. Disinvestment, in this context, is not simply about raising money for the government; it is also about nudging these enterprises into a culture of efficiency, accountability, and value creation.
Past efforts at disinvestment have been patchy. Political sensitivities, market conditions, and bureaucratic delays have often slowed down the pace. Several marquee sales—such as Bharat Petroleum or IDBI Bank—have struggled to move forward despite repeated announcements. Sitharaman’s admission that the agenda had gone into “slow motion” is an acknowledgement of these bottlenecks.
Yet, her tone suggests a renewed commitment. By promising to “press the pedal,” she signals that disinvestment will no longer remain a back-burner item but instead become a driving theme of the government’s economic strategy.
If executed well, the impact could be significant. Fresh inflows from disinvestment could ease fiscal pressures, while efficient PSUs could contribute more dynamically to growth. Asset monetisation, in particular, offers the possibility of unlocking dormant capital that can be redeployed in critical infrastructure or social sectors.
For Sitharaman, the challenge is to balance political realities with economic imperatives. But as her words indicate, the intent is firm. After GST reforms, disinvestment is where she wants to leave a mark—pushing India’s growth story into a new gear.