India’s Economic Affairs Secretary, Anuradha Thakur, expressed optimism about surpassing the ₹800 billion divestment target for FY26. The strategy will combine divestment, privatization, and asset monetization, ensuring fiscal prudence while safeguarding social and developmental priorities. The announcement signals India’s proactive approach to strengthening its financial position amid easing global uncertainty.
Anuradha Thakur, India’s Economic Affairs Secretary, stated that the government is hopeful of exceeding its ₹800 billion divestment target for FY26. This ambitious plan will be achieved through a strategic blend of divestment, privatization, and asset monetization, reflecting India’s commitment to fiscal discipline while advancing developmental goals.
Key highlights from the announcement:
-
Target Confidence: The government expects to surpass the ₹800 billion target, signaling strong reform momentum.
-
Privatization Drive: Strategic sales of stakes in public sector enterprises will remain central to the plan.
-
Asset Monetization: Leveraging infrastructure assets for revenue generation will complement divestment efforts.
-
Fiscal Discipline: The approach balances fiscal prudence with social spending priorities, including healthcare, education, and rural development.
Analysts note that exceeding the divestment target would strengthen India’s fiscal position, reduce reliance on borrowing, and boost investor confidence. The announcement comes amid easing global uncertainty, providing India with an opportunity to attract foreign capital and accelerate structural reforms.
Outlook: Successful execution of this strategy could reinforce India’s reputation as a reform-driven economy, aligning fiscal stability with inclusive growth and long-term investment appeal.
Sources: Reuters, Business Standard, The Economic Times, Mint