๐๐ฟ๐๐ถ๐ป๐ฑ ๐ฃ๐ฎ๐ป๐ฎ๐ด๐ฎ๐ฟ๐ถ๐๐ฎ ๐๐ฎ๐น๐น๐ ๐๐ผ๐ฟ ๐๐ฒ๐ฑ๐ถ๐ฐ๐ฎ๐๐ฒ๐ฑ ๐ฃ๐ฟ๐ถ๐๐ฎ๐๐ถ๐๐ฎ๐๐ถ๐ผ๐ป ๐ ๐ถ๐ป๐ถ๐๐๐ฟ๐
Arvind Panagariya recommends the creation of an independent ministry for privatisation. He suggests the government revive disinvestment for public sector undertakings (PSUs) and public sector banks (PSBs).
Key economic points from Panagariya:
- Privatisation of PSUs and banks is a necessary part of economic reform.
- The government should continue disinvestment despite geopolitical issues.
- Gross FDI rose from $71.3 billion in FY24 to $80.6 billion in FY25.
- Gross FDI is projected to reach $94.5 billion in FY26.
- Private equity investors often exit investments when companies launch IPOs.
- Indian companies are increasing overseas investments.
- Foreign portfolio investment (FPI) outflows occurred because Indian equities were overvalued.
- Valuation corrections should reduce outflows by FY27.
- Recent rupee depreciation helps exports.
- India has sufficient water reservoir levels and buffer stocks to manage inflation and monsoon risks.
Source: The Times of India