India Shifts Strategy for State-Run Companies Amid Privatization Woes

India is planning to overhaul over 200 state-run companies to enhance their profitability, moving away from an aggressive privatization strategy that has faced resistance. The new plans, expected to be unveiled as part of the annual budget, include asset monetization and long-term performance targets.

India is slated to reform over 200 state-run firms to bolster their profitability, signifying a shift from Prime Minister Narendra Modi's privatization drive which has encountered resistance, according to government sources.

The overhaul plan, set to be detailed in the annual budget, involves monetizing underutilized land and other assets and establishing long-term performance targets to raise $24 billion in the current fiscal year.

While the privatization strategy announced in 2021 faltered ahead of the general election, the government now aims to enhance the intrinsic value of state companies through measures like succession planning and professional recruitment, with the goal of increasing competitiveness and profits.