The Economic Survey proposals for 2008-09 revealed the finance ministry’s intent to pursue the disinvestment of PSUs on war footing. The UPA government is failing to recognise that the global financial tsunami did not impair the Indian economy owing to our strong regulated regime. The proposal to increase Foreign Direct Investment (FDI) in vital sectors like banks, insurance, defence and the retail will certainly boomerang. The idea of selling the stakes in state-owned companies to raise Rs.25000 crore every year is akin to slaying the duck which lays golden eggs. The present crisis in Air India is a corollary to the government policy to weaken public sector enterprises. It is better late than never that the Dr. Manmohan Singh government stopped dancing to the music played by international financial capital.
Syed Sultan Mohiddin
Kadapa, A.P.