New Delhi, Jan. 11 -- Government should test market's appetite for investing in state-owned enterprises before these entities are picked up for disinvestment, industry body Confederation of Indian Industry (CII) said in its budget recommendations.

The government should make a three-year rolling list of state-owned entities to be privatized, which will encourage deeper investor engagement and more realistic valuation and price discovery, the industry body said in a statement on Sunday.

Reducing the government's stake to 51% in the 78 listed state-run companies could unlock close to Rs.10 trillion for fresh capital investments and development spending, CII said.

Finance minister Nirmala Sitharaman is set to unveil the budget for 2026-27 ...