February 28, 2021

PSU privatisation: Why now and why it matters

In The New Indian Express, Shankkar Aiyar discusses how privatisation of CPSEs has acquired a new sense of urgency and paves the path towards a low-cost high-growth economy.


Excerpts below:


"So as the Americans would say ‘what gives’, what accounts for the shift in language and strategy, the re-convening of the idea? The answer to why now is illustrated by the politics of economics. Economic policy under Modi is not anchored in any particular ideology but is rather entrepreneurial — it rests on the linear coefficient of possibilities and political dividends. 


After the setback in Bihar and Delhi polls, following the jibe of suit-boot ki sarkar, Modi expanded welfare economics and wrapped it in Hindutva politics. In 2021, the BJP is better placed in the Rajya Sabha and the opposition is emasculated. The conversion of the 2014 popular mandate into popular authorisation allows political entrepreneurship."


Read the full article here.

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