Budget 2023: India set to opt for a conservative divestment target for FY24

The Indian government is likely to set a conservative target for the funds it can raise through the disinvestment of state enterprises in fiscal 2024 after mop-up fell short this year, analysts said.

"We pencil in divestment receipts of 350 billion Indian rupees ($4.30 billion) in 2022/23...For 2023/24, we factor in divestments of 500 billion rupees," Kotak Institutional Equities said in a note.

The Indian government has set a 650 billion rupee divestment target for 2022/23.


The brokerage believes the government would look to raise money by divesting further stakes in Life Insurance Corporation, Shipping Corporation of India and exiting holdings of Specified Undertaking of UTI, an investment vehicle which holds shares of listed and unlisted entities previously held by the failed Unit Trust of India.

Kotak also pointed out that outright privatization before general elections will be difficult.

Nomura, too, expects a more conservative target of 500 billion rupees in disinvestment receipts next year.