Apex business chamber CII has recommended a focused approach to privatization in the upcoming Union Budget 2026–27. Emphasizing the importance of private enterprise in driving India’s growth, CII Director General Chandrajit Banerjee highlighted the need for a forward-looking privatization policy aligned with the vision of Viksit Bharat. The chamber has called for expediting the Strategic Disinvestment Policy to exit non-strategic Public Sector Enterprises (PSEs) and maintain a minimal presence in strategic sectors.
CII has proposed a comprehensive strategy to enhance the privatization process. Firstly, they suggest shifting to a demand-based approach for selecting PSEs for privatization. This involves gauging investor interest across a broader set of enterprises to prioritize those with stronger interest and better valuation. Secondly, CII recommends announcing a rolling three-year privatization pipeline to provide investors with clarity and encourage deeper engagement. Additionally, they advocate for an institutional framework to ensure oversight, accountability, and investor confidence in the privatization process.
To facilitate a gradual disinvestment process, CII has suggested a three-year roadmap where the government could reduce its stake in listed PSEs to 51% initially, eventually decreasing it further to between 33% and 26%. This strategic move is estimated to unlock significant value, with the potential to mobilize around Rs 10 lakh crore by reducing the government’s stake to 51% in 78 listed PSEs. By focusing on governance, regulation, and enabling infrastructure, while allowing competitive markets to drive efficiency, strategic privatization aims to maximize value realization for the government and support key sectors like health, education, and green infrastructure.
