This paper gives the definition of disinvestment, expresses the contrast between disinvestment and privatization, gives a short record of public-sector in India and changes in government policy towards the public-sector. The part of the public-sector and private sector has been one of the major issues being developed financial aspects and approach. In a blended economy, for example, India, verifiably the public-sector had been doled out a vital part. In the nineties, India's planning, financial shortages and adjust of installments issues kick began the administration's inclination to open the gigantic speculations affixed in the public sector enterprises (Pses). The real push for Disinvestment Policy in India came through the Industrial Policy Statement 1991. The new strategy of liberalization, privatization and globalization-underlined the part of the public-sector in the nation’s economy. The approach expressed that the administration would disinvest some portion of their values in chose PSEs. The Four Ps of disinvestment is Policy, Promise, Prognosis and Performance. In later past, we have been seeing a considerable measure of verbal confrontation on the disinvestments situation proposing dynamic development.