Write 3 observations highlighting the need and significance of disinvestment.
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Explanation:
As it allows an entity to reduce its debt, disinvestment can pave the way for the long-term growth and development of a country. Moreover, it enables the open market to have a larger share of PSU ownership, thereby facilitating the development of a stronger capital market.
In simple words, the main objectives of disinvestment in India can be summed up as follows:
Improving public finances
Lowering Government’s fiscal burden
Allowing higher private ownerships
Promoting and maintaining competition in the market
Funding programmes for growth and development
Depoliticising non-essential activities
Read more on Groww: https://groww.in/blog/disinvestment-in-india-objectives-and-importance/
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