Indian Economy·Prelims Strategy

Disinvestment Policy — Prelims Strategy

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Version 1Updated 7 Mar 2026

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Prelims Strategy

For Prelims, a strong grasp of factual details is paramount. Focus on the timeline of key policy shifts: 1991 reforms, Rangarajan Committee (1993), establishment of DIPAM, and the latest policy pronouncements (Budget 2021-22 strategic/non-strategic sectors).

Memorize the different methods of disinvestment (IPO, OFS, Strategic Sale, ETF, Buyback) and their core characteristics. Pay close attention to the distinction between disinvestment and privatization.

Keep track of major disinvestment cases, especially those completed recently (e.g., Air India) or those facing significant delays (e.g., BPCL, IDBI Bank), noting their method and key outcomes. Understand the primary objectives of disinvestment and the role of institutions like DIPAM.

Vyyuha advises creating a chronological chart of policy evolution and a comparative table of disinvestment methods to aid quick recall. Current affairs related to disinvestment targets, actual achievements, and new proposals are frequently tested.