A critical discussion of the disinvestment/privatization process in India since the start of the economic reforms in 1991

With the elections over and a reforms-friendly Congress government with majority being voted back to power in India in April/May 2009, the issue of disinvestment/privatization of public sector enterprises is expected to become a focal one soon. This research note purposes to provide a critical understanding of the various policy issues and implementation methods that have arisen from and out of the disinvestment/privatization process in India since the economic reforms began in 1991. In doing so, it also aims to bridge a critical gap in the reforms policy literature in this area. The key issues that are raised in this paper are as follows: (a) the policy basis for the disinvestment/privatization of state-owned enterprises in the reforms period in India; (b) the methods chosen for such; and (c) the limitations and constraints of the implementation of such policy. The approach in this research note is that of a critical discussion of the broader disinvestment/privatization policy process as a whole.