MasteryExams
Economics • Indian EconomyHard

What is the core economic purpose of the National Monetisation Pipeline launched by the Government of India?

A. To unlock value from brownfield public infrastructure assets by engaging private sector investments through asset monetization models without transferring ownership✓ Correct Answer
B. To sell all public sector commercial banks outright to foreign institutional investors to eliminate public debt
C. To privatize agricultural land ownership and transfer titles to corporate farming conglomerates
D. To monetize government debt by printing unbacked currency notes through the central bank

💡 Solution & Explanation

The National Monetisation Pipeline aims to unlock private capital investment by leasing brownfield infrastructure assets such as highways, railways, and pipelines to private operators under structured concessions while retaining ultimate government ownership. Outright privatization of public banks involves separate strategic divestment policies. Agricultural land remains protected under distinct state legislations. Monetizing debt through unbacked currency printing violates statutory fiscal responsibility rules.

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