Arvind Panagariya Urges India Privatization
Analysis based on 6 articles · First reported Jun 15, 2026 · Last updated Jun 15, 2026
The proposed privatization of public sector undertakings and banks in India could lead to increased efficiency and attract more foreign investment, positively impacting the Indian stock market and overall economic sentiment. The discussion on rupee depreciation and capital outflows suggests a potential stabilization in foreign portfolio investment, which could reduce volatility in Indian equities.
Former India — NITI Aayog vice chairman Arvind Panagariya has urged the government of India to revive the privatization of public sector undertakings (PSUs) and public sector banks (PSBs), considering it integral to India's economic reforms. He also advocated for the creation of an independent privatization ministry to accelerate the disinvestment agenda. Arvind Panagariya addressed concerns about capital outflows from India, explaining that gross FDI remains strong, with exits primarily from private equity investments and increased overseas investments by Indian firms. He noted that the recent depreciation of the India — Indian rupee has corrected its overvaluation, making Indian equities more attractive to foreign investors, and expects foreign portfolio investment outflows to calm down in FY27. Arvind Panagariya also expressed hope that the State Bank of India would not prevent the India — Indian rupee from crossing the Rs 100-per-dollar mark.
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