The bull statue greeting those who enter the Bombay Stock Exchange

Modi unlikely to overhaul India’s state-owned giants

  • The Modi government’s actions don’t match its slogans on state-owned firms
  • Selling government stakes in these companies is politically unpopular
  • They can also bring in money to bridge budget deficits
  • Instead of privatizing, PM Modi will squeeze them for cash

Indian Prime Minister Narendra Modi is implementing an ambitious plan to reform the country’s central public sector enterprises (CPSEs) – companies owned by the federal government. However, rather than liberalizing the market and privatizing the firms, the initiative may end up consolidating the government’s hold over the economy. During the election campaign in the summer of 2014, Mr. Modi promised “minimum government, maximum governance” as his guiding philosophy for the economy. His oft-repeated mantra both before and after the election was that “the business of government is not business.” Yet many who expected big economic reforms, especially the privatization of many of the CPSEs, have been disappointed.

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 Barun S. Mitra
For the past 18 months, the government has been trying to sell 5-10 percent of its holding in CIL, with little success
read more about it in the report
What's inside
  • The Modi government’s actions don’t match its slogans on state-owned firms
  • Selling government stakes in these companies is politically unpopular
  • They can also bring in money to bridge budget deficits
  • Instead of privatizing, PM Modi will squeeze them for cash
Who will benefit?
  • Report is targeted to the decision makers in cross country manufacturing – suppliers, manufacturers, logistics.
  • Also considered useful for the administrative university facilities, to better understand the possibe effects of current decisions.
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