The Central Public Sector Enterprises were created to help India achieve economic independence, and they've since gone on to play a crucial part in the country's continued economic success. Massive investments in public companies were embraced as an economic strategy in nation to speed up and more fairly distribute economic growth. In terms of infrastructure and public services, government-owned CPSEs were crucial. CPSEs had a very low return on capital employed, as shown by the new economic policy implemented in July 1991. In light of this realization, it became clear that the government needed to disband certain sectors in order to refocus its efforts and what has been dubbed as "Disinvestment Policy". Both descriptive and analytical elements are included in this study. It examines what disinvestment is, how it may be accomplished, the criterion used by the Indian governments, and a breakdown of the amount that has been diverted from 2015 to 2020.
CPSE, Investment, Disinvestment, Economic Policy
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