(ET)
Chief Economic Advisor Krishnamurthy Subramanian said the disinvestment of a profitable company like BPCL reflects a change in the way government views disinvestment and privatization. “So far effectively the disinvestment figure had to decide fiscal deficit figure… but what we see now basically profitable companies like Bharat Petroleum is also being given to the private sector. It’s a change in stance the way we view disinvestment and it also explains why this is required,” Subramanian said while speaking at FICCI ARISE Conference 2019.
Batting for private investment, the CEA said: “The private sector does a far better job of taking the savings of the economy and ploughing it back in the form of taxes and job creation. The public sector can then use it for welfare”, he said.
Subramanian said investment is the key driver for sustained growth. “Reforms that we are seeing today is an articulation of a cogent vision that essentially has investment, and especially private investment, at its heart,” he added.
