Divestment is the government selling part or all of its stake in public sector enterprises to raise resources and improve efficiency. Proceeds can fund capex, reduce deficits or finance social schemes.
India sets an annual divestment target in the Budget. Realisations often fall short due to market volatility, regulatory delays and tepid investor appetite. Strategic sales, ETFs, and IPOs are the typical routes.
For credibility, fewer big-ticket items and realistic timelines matter more than headline numbers.