New Delhi, March 19 -- It is unfortunate that India's government has decided to call off the privatization of IDBI Bank for now, as reports indicate. The disappointment is that this decision was reportedly taken in response to poor investor interest-as seen in low bids for the 61% stake on offer to corporate bidders.

There are many reasons behind the process of what we in India like to call 'disinvestment,' a euphemism coined as a political shield against critics. The money it raises is just one reason. It pales in front of another motive, one that has long been regarded as a free-market principle.

Namely, that governments should not be in any business that the private sector can do as well, if not better. It was this aspect of India's ...