India's Asset Sale Strategy — Viewed Through the Lens of Differences in Economic Policies with China

India’s newly announced asset sale targets suggest a diversity in economic management strategies among major Asian economies. The ambition to surpass 800 billion rupees, articulated by India’s Secretary of Economic Affairs, symbolizes a different approach from other regional countries, particularly China.

New Strategy Aiming to Exceed 800 Billion Rupees

According to Jin10, India’s government-led strategy goes beyond mere asset sales. It is a comprehensive approach that combines three pillars: asset reduction, privatization, and securitization. These measures are carefully planned to strengthen the government’s fiscal foundation and enhance overall economic efficiency.

Optimizing Fiscal Resources through Privatization and Securitization

India’s combination of privatization and securitization aims to transfer public sector assets to private companies, reducing the direct burden on the government. Simultaneously, securitizing these assets enables new funding from financial markets. This approach is expected to allocate India’s fiscal resources more efficiently and accelerate economic growth.

Lessons from the Comparison with China’s Economic Measures

Meanwhile, China adopts a different approach. While India emphasizes privatization, China focuses on structural reforms of state-owned enterprises and technological innovation. The differences in strategies reflect each country’s stage of economic development and political-economic system. India’s asset sale strategy seeks to utilize limited public resources more effectively, indicating a different response to economic challenges compared to China’s industrial upgrading strategy.

Through these policy measures, India aims not only to achieve fiscal targets but also to build a more sustainable foundation for economic growth.