Disinvestment is the opposite of investment wherein an organisation or a government sells (or liquidates) any of its assets to make some gains. Disinvestment is a route the government opts for when it wants to raise extra capital.

Not only does the move bring the government exchequer additional capital, it also helps bridge the fiscal deficit. Furthermore, it allows the government to offload its burden by bringing private players into public sector units.

Disinvestment has been in the news as it is one among the many important aspects presented in a Union Budget. This is when the government announces its divestment target and highlights the amount it intends to raise from selling its holdings in pubic sector units.