Why is the Government undertaking the disinvestment of PSUs?

 ✅ The target of disinvestment is to contain the fiscal deficit of the Government.

 

✅The PSUs are no longer profitable as they are facing competition from private companies which are working in the same sectors.

✅If the PSUs are not disinvested at an appropriate time, then many of them will become sick. Many PSUs have already become sick units.

 ✅ Many of these undertakings have outdated technology and are not really competitive.

 ✅ Currently, as the government needs money, option of disinvestment is favourable, rather than investing for modernizing and reviving unprofitable PSUs, considering that they do not serve any strategic purpose.

 ✅Privatisation is the best option for Indian economy to push forward its growth trajectory.