How is the money raised through the disinvestment process by the government of India helping in generating revenue and decreasing the fiscal deficit?

Disinvestment is the process of selling government owned enterprises in the private sector. The government uses the tool of disinvestment if the government owned enterprises are suffering from loss or if the government wants to raise revenue through disinvestment.

Disinvestment will cause a reduction in the government's asset and leads to the rise in the capital receipt of the government. A rise in capital receipts will increase the government revenue and therefore, lowers the fiscal deficit of the government.