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Inside India newsletter: What's behind India’s rush to sell shares in state-owned firms

Priyanka Salve· ·1 min read · 0 reactions · 0 comments · 4 views
Inside India newsletter: What's behind India’s rush to sell shares in state-owned firms
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Its fiscal deficit at the end of June was 3.1 trillion rupees, or 18.2% of the budget estimate for the financial year ending March 2027.While this is not unusual for India, the country has also seen strong capital outflows from foreign investors, which limits its ability to cover the rising import expenses.

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CNBC · Priyanka Salve
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Original publisherCNBC
Canonical URLhttps://www.cnbc.com/2026/08/06/india-lic-shares-economy-disinvestment-.html
Publication timeThu, 06 Aug 2026 00:11:08 GMT
Retrieval time2026-08-06T00:14:33.655Z
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"Tapping into the divestment proceeds is a very good strategy," Anubhuti Sahay, head of India economic research at Standard Chartered Bank, told CNBC, adding that the government is facing a downside revenue risk and an upside expenditure risk due to a higher subsidy burden.India did not meet its disinvestment targets for years as it was in a "comfortable fiscal situation," she said, adding that right now the stake sale is akin to tapping into "family silver" in times of need.For the quarter ending June, the country's goods and services trade deficit was $37.4 billion.

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