India to ditch privatisation plans, pour billions in state-run firms, sources say 

Indian Prime Minister Narendra Modi is pouring billions into ailing state-run firms after slowing ambitious divestment plans that were intended to reduce the role of the state in business, according to government sources and a document reviewed by Reuters.  

Less than a month into 2025, New Delhi has plans to invest about $1.5 billion in financial rescue packages for two state-owned firms after failing to sell them to private companies. 

Why it matters 

In 2021, Modi’s government had outlined ambitious plans to reduce the role of government in business and laid out large scale disinvestment while keeping a minimal presence in strategic sectors. Four years later, it has had little success and is instead moving back towards recapitalising some state-owned firms.