Disinvestment and It's Impact on Indian Economy

Abstract

Disinvestment is a strange word. The common people can not easily run after the inner meaning of this interesting word. The question is that why such type of word is used in political economy? The answer is that there is some political trick to avoid some unprecedented political disturbance in the country. In this research paper, We should try to understand the definition and meaning of disinvestment and its related items. The disinvestment program has launched in India in 1991,the Watershed year, depending on some economic misbalance and political pressure of developed countries, IMF, WB, UNCTAD etc.Successively all the central government of India has sold or disinvested more shares of sick public sector as well as the profit making public sector to private enterprises after 1991 to till now. The GOI has advocated on the behalf of the disinvestment because she has dreamed that it will pursue the economic growth as well as economic development. Now we should check up the different indicator of economic development whether it changes up positively or negatively. So we should discuss in this research paper the development of social indicator such as latrine facility, Illiteracy rate ,life expectancy rate at birth, internet users, assets having in the households, child death rate, child and women labour security ,formal unemployment etc.It will be deeply identified in this paper the basic changes in GDP growth, export earnings, import bill , fiscal deficit ,govt. revenue earning, govt. expenditure, India's business ranking in the world etc. Development is a functioning and GDP growth is a element of development function.