The Confederation of Indian Industry has urged the government to implement a calibrated privatisation strategy in the Union Budget 2026-27 to sustain capital expenditure and achieve key development goals amid global economic uncertainty. The industry body emphasizes that resource mobilisation through privatisation should target sectors where private participation can enhance efficiency, introduce advanced technology, and boost global competitiveness.

Strategic Privatisation Framework

CII Director General Chandrajit Banerjee highlighted that India's growth momentum is increasingly driven by private enterprise and innovation. "A forward-looking privatisation policy, aligned with the vision of Viksit Bharat, will enable the government to focus on its core functions while empowering the private sector to accelerate industrial transformation and job creation," Banerjee stated.

The confederation has called for faster implementation of the government's Strategic Disinvestment Policy, which aims to exit all public sector enterprises in non-strategic sectors while maintaining limited presence in strategic areas.

Four-Point Implementation Strategy

CII has proposed a comprehensive approach to strengthen and accelerate the privatisation process:

Demand-Driven Approach

The industry body recommends shifting from the current government-led selection process to a demand-driven model. Instead of selecting enterprises for sale and subsequently seeking investor interest, CII suggests first assessing investor appetite across a wider pool of enterprises, then prioritising those attracting stronger interest and appropriate valuations. This approach would enable smoother execution, better price discovery, and help identify procedural bottlenecks through structured investor feedback.

Three-Year Privatisation Pipeline

CII proposes announcing a rolling three-year privatisation pipeline to provide visibility on enterprises likely to be privatised during this period. Greater clarity and longer planning horizons would deepen investor engagement, support realistic valuations, and accelerate the overall process.

Institutional Framework Enhancement

The confederation recommends establishing a dedicated mechanism comprising three components:

• Ministerial Board: Strategic direction
• Advisory Board: Industry and legal experts for independent benchmarking
• Professional Management Team: Execution, due diligence, market engagement, and regulatory coordination

This structure would track market developments, stakeholder feedback, and post-privatisation outcomes for continuous improvement.

Financial Impact Analysis

Recognising the complexity of complete privatisation, CII suggests a calibrated disinvestment approach with a three-year roadmap. The strategy involves gradually reducing government stakes in listed PSEs to 51%, allowing the government to remain the single largest shareholder while unlocking significant market value.

According to CII's analysis, this calibrated reduction could unlock close to ₹10.00 lakh crore across 78 listed PSEs. The stake could subsequently be further reduced to between 33% and 26% over time.

Strategic Benefits

"A calibrated reduction of the government's stake in listed PSEs to 51% and even lower is a pragmatic step that balances strategic control with value creation. Unlocking nearly ₹10.00 lakh crore of productive capital would provide vital resources to accelerate physical and social infrastructure development and support fiscal consolidation," Banerjee explained.

CII emphasizes that these measures would enhance investor confidence, ensure predictability and transparency, and maximise value realisation for the government. By focusing on governance, regulation, and enabling infrastructure while allowing competitive markets to drive efficiency, strategic privatisation can free up public resources for priority areas including health, education, and green infrastructure. The Union Budget for 2026-27 will be presented on February 1 as per convention.

Goa Chief Minister Pramod Sawant attended the pre-budget meeting for Union Budget 2026-27 in New Delhi, where he presented the state's developmental priorities and sought more equitable funding arrangements with the Centre. The meeting, chaired by Union Finance Minister Nirmala Sitharaman on Saturday, brought together finance ministers from various states and Union Territories along with senior officials to discuss key provisions for the upcoming budget.

Key Demands and Priorities

During the meeting, Sawant emphasized Goa's unique geographical and ecological challenges while presenting the state's funding requirements. The Chief Minister sought a more equitable Centre-state funding pattern under centrally sponsored schemes, highlighting three critical factors that make Goa's situation distinct:

Infrastructure and Development Focus

The discussions covered multiple developmental aspects crucial for Goa's growth trajectory. Sawant presented detailed requirements for sustaining momentum in critical infrastructure projects while seeking continued support for capital investment. The state also emphasized the importance of carrying forward state-specific Finance Commission recommendations to ensure comprehensive development.

Special attention was given to improving industrial and logistics connectivity, with particular focus on enhancing rail links to major urban centres. The Chief Minister highlighted the need for developing climate-resilient infrastructure to effectively address coastal and environmental challenges that are unique to the state.

Social Welfare and Sustainability Initiatives

The meeting addressed various social and environmental priorities that align with national development goals. Key areas of discussion included:

• Augmenting healthcare capacity to meet growing demands
• Strengthening waste management and sanitation systems
• Supporting tourism diversification and skill development programs
• Accelerating transition towards renewable and clean energy sources

These initiatives are designed to support India's national climate commitments while addressing Goa's specific developmental needs.

Vision Alignment

Sawant emphasized that these consultations represent an important step towards aligning state aspirations with national development objectives. The discussions were framed within the context of Goa's journey towards Viksit Goa 2037, which harmonizes with the broader national vision of Viksit Bharat 2047. This alignment ensures that state-level development plans contribute effectively to the country's overall growth strategy while addressing local priorities and challenges.