Question

what is meant by disinvestment? give reasons for and against dis investment in india
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Answer 1

Disinvestment-Means sale or liquidation of assets by government, usually central and state public sector enterprises, projects, or other fixed assets.

Considerable disinvestment of government 's stakes CPSEs would squeeze this important source of revenue for the government. Apart from generating a one time sale amount, a lot of these stake sales have also resulted in higher annual revenues for the government, thus nullifying the effect of loss of dividends.