In a significant pre-Budget recommendation, the Confederation of Indian Industry (CII) has proposed a major resource mobilization plan for the government. The influential industry body has suggested that the government could raise a staggering Rs 10 lakh crore by strategically reducing its stake in as many as 78 public sector enterprises (PSEs).
The Core Proposal: A Calibrated Privatization Drive
The proposal, part of CII's submissions for the upcoming Union Budget, advocates for a measured and strategic approach to disinvestment. Instead of a blanket sell-off, the industry body recommends focusing on specific sectors where increased private sector participation can deliver tangible benefits. The core argument is that private capital and management can drive greater efficiency, infuse advanced technology, and enhance global competitiveness in these identified enterprises.
CII's plan is not merely about generating fiscal resources but is framed as a structural reform to strengthen the Indian economy. The Rs 10 lakh crore figure represents a massive potential infusion of funds that could be redirected towards critical public spending on infrastructure, social sectors, or further stimulating economic growth.
Strategic Focus on Efficiency and Competitiveness
The emphasis on a "calibrated approach" is a key detail of the proposal. This implies a selective process where the government would identify PSEs operating in sectors where the private sector has proven expertise and the ability to scale. The goal is to unlock the latent value in these enterprises by bringing in private sector dynamism, innovation, and operational expertise.
By doing so, the government can potentially transform these entities into more profitable and market-oriented organizations, while simultaneously achieving its disinvestment targets and reducing the fiscal burden. The proposal underscores a long-standing belief in policy circles that strategic disinvestment can lead to better utilization of national assets.
Context and Potential Implications
This recommendation comes at a crucial time as the government formulates its economic priorities for the next fiscal year. Mobilizing resources without increasing the tax burden is a perennial challenge. The CII's proposal offers a roadmap to achieve this by accelerating the privatization agenda in a structured manner.
The success of such a plan would depend on market conditions, investor appetite, and the execution of a transparent and efficient disinvestment process. If implemented, it could represent one of the largest privatization drives in the country's history, significantly altering the landscape of India's public sector. The proposal, dated 11 January 2026, and reported by Gyanendra Keshri, sets the stage for a major policy debate in the lead-up to the Budget.
Ultimately, CII's pitch links fiscal prudence with economic reform, suggesting that strategic stake sales are not just about raising money but are a catalyst for making Indian industries more robust and competitive on the world stage.
