The Indian government’s efforts to privatize state-owned companies provide a “great opportunity” for the country to become a $5 trillion economy, a top Indian business leader told CNBC.

This week the country’s Finance Ministry announced that the government has a disinvestment target of 1.75 trillion rupees (about $24 billion) for the next fiscal year, which starts on April 1. The government plans to sell state-owned assets to the private sector or list them on the stock exchange.

This would include completing the privatization of state-owned companies such as Air India, Container Corporation of India and Shipping Corporation of India, among others. It would also involve a government proposal to make two public sector banks and a general insurance company private.

“This is a very good move,” according to Anil Agarwal, executive chairman of diversified natural resources firm Vedanta Resources. He set up a $10 billion fund  with UK-based investment firm Centricus last year, aimed at investing in government companies that are up for sale.

Also on rt.com

© Unsplash.com / Ian Taylor
India has capacity to strengthen global supply chains – PM Modi

Agarwal told CNBC that the government’s stake sale efforts will provide a “great opportunity, all over the world, for people to come in and invest.” It would also make the state-owned companies more productive, he added.

India is expected to become the world’s fastest-growing economy in 2022, according to the International Monetary Fund (IMF). The fund’s forecast followed “a stronger-than-expected” recovery in 2020.

India’s economy is currently the fifth largest in the world, with a GDP of $2.6 trillion, according to the IMF.

For more stories on economy & finance visit RT’s business section

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »
Legal Notice: Views expressed in articles published in www.ebusinessbrief.com are those of the authors and www.ebusinessbrief.com or its owners take no responsibility regarding the same. Advertisements in www.ebusinessbrief.com are published for information of the subscribers. www.ebusinessbrief.com does not authenticate, endorse or guarantee any of the products or services or claims made by the Advertisers. Readers are advised to themselves verify the details. No part of this publication may be reproduced by any means without prior written permission from the Editor. Permission is normally granted wherever sufficient acknowledgement is given to www.ebusinessbrief.com.