Question

"In the post-reform period, the government of India decided to privatise profit making public sector undertakings (PSUs)."

Do you agree with the given statement? Give valid arguments in support of your answer.

Answer 1

• No, I disagree with this statement. In the post-reform period, the Government of India decided to keep profit-making public sector undertakings (PSUs). To increase efficiency, instill professionalism, and enable Public sector undertakings (PSUs) to compete more successfully in the liberalised global environment, the government identified profit-making PSUs.
• The government classified them as Maharatnas, Navratnas, and Miniratnas. PSUs were granted increased administrative and operational autonomy in making various decisions.
• As a result, over time, these Maharatnas, Navratnas, and Miniratnas have outperformed and established themselves as market leaders.