Disinvestment of Public Sector Enterprises in India


Yadav, B.S. & Aggarwal, Poonam


The founders of our country recognized the importance of the public sector in India’s economic development. One of the primary goals in establishing the Indian public sector was to create infrastructure for economic growth and rapid expansion.

Public enterprises have long been a key component of the fight for economic development with social justice. However, in 1991, economic constraints, such as a worsening balance of payments situation and rising fiscal deficit, prompted authorities to take a new approach toward the public sector.

The government of India has implemented disinvestment of public sector firms (USUs) as one of the policy measures to provide financial discipline and boost performance in line with the new economic strategy of Liberalisation, Privatisation, and Globalization. 1991 Industrial Policy Statement

The objectives of disinvestments policy are as follows: (i) providing more resources to meet fiscal deficits; (ii) expanding public involvement, including that of employees; (iii) encouraging market discipline in the public sector; and (iv) enhancing performance. This book explores the origins, responsibilities, effectiveness, and issues of public sector enterprises, as well as the policies implemented for their growth since 1991.

The book also covers the subject of privatization/disinvestment in detail, including how it was carried out in India. The Book will be useful to policy makers, innovators, academics, researchers, investors, post-graduate students and those interested in researching public sector enterprise disinvestments.

Contents : Preface / Genesis and Need of Public Sector Enterprises in India / Development and role of Public Sector Enterprises in India / Efficiency, Profitability and Performance Appraisal of Public Sector Enterprises After Economic Reforms / Rationale and Methods of Privatisation / Disinvestment of Public Sector enterprises in India / A Critical Evaluation of Privatisation and Disinvestment / Appendices / Bibliography.

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