G.V. Ramakrishna, the former head of India's disinvestment commission, says the biggest flaw in the government's approach to privatization has been its inability to sell the programme politically. Jaitley, who is also minister for information and broadcasting, says the mass media will ensure that his message gets across. One major sticking point will be the sale of companies to foreigners. Foreign capital and expertise are essential to turning around companies such as Air India. Car giant Maruti, a joint venture between the government and Suzuki Motors, has seen its market share plummet as nimbler rivals from South Korea deliver better cars at competitive prices.
All eyes are now on the companies shortlisted for the first round of privatization.
Prompt implementation of policy isn't a hallmark of India's bureaucracy. The rest will take care of itself. Jaitley doesn' t have time on his side. Next year, several large states such as Uttar Pradesh and West Bengal are scheduled to hold assembly elections. A setback for the BJP and its allies in state elections could stall the privatization process.