Covid crisis: India can not afford a 'shock therapy' of the kind Russia experienced in early 1990s
Till recovery takes place, proceeding with disinvestment and privatisation may need to be put on hold. There is no capacity in the Indian private sector to participate in such processes as they are themselves struggling to survive and need state support.Once concern on the fiscal deficit is shed after recovery begins, raising resources and prioritising their use would be the challenges. Increasing government borrowings should not be difficult. In addition to increasing normal borrowing, the government could itself, or through a financial agency, issue long-term bonds for retail investors who have been rushing to put money in bank FDs.