Faizel Patel – 26/08/2021
Asia Pacific correspondent Sanusha Naidoo says India’s plans to lease state-owned assets to the private sector in a bid to raise 6 trillion rupees ($81 billion) has raised concerns that it may create oligarchs of private sector firms.
India plans to raise the funds to repair public finances battered by the COVID-19 pandemic and fund new infrastructure.
The country has been reeling from a Coronavirus surge and with the strict lockdowns to contain the virus, a significant budget deficit and pushing millions into poverty.
The plan involves Prime Minister Narendra Modi’s strategic divestment policy, under which the government will retain presence in only a few identified areas with the rest tapping the private sector.
Speaking during the Asia-Pacific Report on Radio Islam, political analyst Sanusha Naidoo says there have been criticism about the plan to raise funds, especially from the private sector.
“What is very interesting is that critics are now saying that this is almost an area where you can create oligarchs for private sector firms in particular families, oligarchy families, families that have a dynastic economic traction in the Indian economy could actually become much more powerful. It also opens itself up to state capture, deeper engagement and also questions of corruption.”
Naidoo says opening the state infrastructure to the private sector also gives them a bigger plan in the economy.
“I think that whilst the finance minister says its going to be ownership of assets that will remain with the state, there’s also the question of where the mandatory hands off will happen to the state and how it will happen.”
Naidoo also shared updates about Philippine President Rodrigo Duterte running as Philippines vice-presidential candidate in next year’s election, in a move that leaves boxer-turned-senator Manny Pacquiao down but not out in his bid to become the country’s next leader and Sri Lanka’s new animal protection law bans the drunk driving of elephants.
Listen to the Asia-Pacific Report with Sanusha Naidoo
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