---
title: "Disinvestment Definition and Overview | Model Diplomat"
description: "Disinvestment is the sale of government equity in public-sector undertakings, aimed at revenue mobilization and improving efficiency in India."
url: "https://modeldiplomat.com/learn/glossary/disinvestment"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- Disinvestment is the sale or liquidation by the government of its equity holding, wholly or in part, in a public-sector undertaking.
- How does disinvestment differ from privatisation?
- Which body administers disinvestment in India?
- What did the Supreme Court rule in the BALCO case (2002)?
- What are the main routes of disinvestment?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

Disinvestment is the sale or liquidation by the government of its equity holding, wholly or in part, in a public-sector undertaking.

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In January 2022 the Government of India transferred Air India to Tata Sons for ₹18,000 crore, completing the strategic disinvestment of the loss-making national carrier first nationalised in 1953.

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