[BIG NEWS] Modi Government Shifts Focus from Privatisation to Overhauling State-Run Firms

- The Modi government has decided to drop its aggressive privatisation plans and will instead focus on overhauling more than 200 state-run firms to make them more profitable. - The new strategy, expected to be unveiled in the annual budget on July 23, includes selling underutilised land and monetising other assets to raise $24 billion in the current fiscal year. - The government aims to set five-year performance and production targets for each company, introduce succession planning, and train 230,000 managers for senior roles. - Despite hurdles in privatisation, the market valuation of state-run firms has more than doubled in the past year, indicating investor confidence in the sector's reforms. - Analysts warn that India risks missing the opportunity to capitalise on booming valuations, but the government expects higher profits and increased returns from its reforms. Source: Reuters