Updated By: LatestGKGS Desk
Impact Of Liberalization And Privatisation On Public Sector Undertakings In India
Impact Of Liberalization And Privatisation On Public Sector Undertakings In India On July 24, 1991
On July 24, 1991, the New Economic Policy was announced to be followed from there on that has been advocating for public sector reforms.
Under the collapse of socialist model of development, non fulfillment of specified objectives of the State of PSUs leading to low growth, underdevelopment and Liberalisation, privatisation and globalisation principles brought in fundamental changes in the approach of public sector responsibilities and priorities where the role of the State is rolled back and restrictions removed along with New Public Management, Public Choice theory and Public-Private Partnership theories and practices taking over.
Full finance and operational autonomy have been granted by Union govt to the nine leading PSUs through the Navratna status and the lesser autonomy status conferred on others under the Maharatna and Miniratnas status.
PSUs are still very important because they play a very important role in the neutral and impartial implementation of a planned economy as well as socio-economic development and justice and efficiently regulating the monies in the economy.
