I am in favour of disinvestment. But if a disinvested company has to tie up with a government company for its livelihood, there is a problem.

Ratan Tata’s quote expresses his support for disinvestment, which refers to the process of selling off government stakes in state-owned enterprises to encourage privatization and market-driven growth. However, he raises a concern about the potential for a conflict of interest when a disinvested company is forced to partner with a government company for its survival. Tata is pointing out that while disinvestment can bring benefits like increased efficiency and innovation, if companies still rely on government support, the desired outcomes of privatization, such as autonomy and competition, may not be fully realized.

Tata’s words reflect his belief in the importance of creating a level playing field in business, where companies can thrive based on their merit and competitiveness rather than relying on government intervention. He is cautioning against situations where privatized or partially privatized companies become dependent on government companies or state-owned enterprises for financial support or contracts, which could undermine the goals of disinvestment and privatization. His perspective emphasizes that true economic independence and market growth require companies to operate without reliance on government handouts.

The origin of the quote is rooted in Tata’s role as the chairman of the Tata Group, one of India’s largest conglomerates, which has been involved in various privatization and disinvestment efforts over the years. As a business leader, Tata has often spoken about the importance of free markets and private enterprise in driving India’s economic growth. His comments likely stem from his experiences in navigating India’s evolving economic policies, particularly the shift towards a more liberalized economy.

In essence, Tata’s quote reflects a pragmatic approach to economic reform. While he supports the concept of disinvestment to reduce government control over the economy, he also highlights the challenges of ensuring that privatized companies are truly independent and not dependent on government support. The quote calls for a balance between privatization and economic autonomy to ensure the success of disinvestment policies.