Indian Prime Minister Narendra Modi is shifting focus from privatisation to bolstering state-run firms, allocating billions in rescue packages, government sources and documents reveal. Despite earlier plans to reduce state involvement in business, New Delhi has scaled back its ambitious divestment strategy. In early 2025, the government has earmarked approximately $1.5 billion to financially support two struggling state-owned enterprises after attempts to privatise them failed to attract buyers. This marks a significant policy pivot for Modi's administration.
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