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How India is able to sell a large number of government-owned companies

Until last year, Air India was a chronically underperforming government-owned airline. Now it is set to place orders for 500 aircraft worth $100 billion to tap into India’s booming aviation market. Prime Minister Narendra Modi has often said that the government has no business being in business. Any proposed sale of government assets raises suspicions about their prices and whether they are being sold to “cronies” or “oligarchs”. The only way to determine the right valuations and buyers is to first list the businesses on India’s booming equity markets. Privatization will provide the economic momentum that India needs.