Modi Kicks off India's Biggest Asset Sale

The video discusses India's struggle with a widening budget deficit and economic slowdown. The government plans to raise $229 billion through asset sales, including a minority stake in Life Insurance Corp, to fund the deficit. However, past failures and strong opposition from labor unions pose challenges. If asset sales fall short, the government may need to borrow more or rely on the Reserve Bank of India for dividends.

What is the government's plan to address the budget deficit?

• Increase taxes

• Raise funds through asset sales

• Borrow from international banks

• Cut public spending

Which company is the government planning to sell a minority stake in?

• State Bank of India

• Life Insurance Corp

• Reserve Bank of India

• Barrett Petroleum

What is a major concern of labor unions regarding asset sales?

• Increased taxes

• Job losses

• Higher inflation

• Reduced government control

What percentage of total receipts is the government expecting from divestments?

• 7%

• 10%

• 5%

• 2%

If divestments do not occur as planned, what might the government need to do?

• Increase exports

• Reduce interest rates

• Cut social programs

• Borrow more money