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Privatisation of PSU’s is Boon or Curse for future Indian Economy?

Privatisation of PSU's is Boon or Curse for future Indian Economy Civil-Academy-IAS/PCS-NTPC-BHEL-Indian-Oil-Coal-India-Bharat-Petroleum-ongc

लोक उपक्रमों का निजिकरण भारत के भविष्य की अर्थव्यवस्था के लिये वरदान है या अभिषाप?

Privatisation of PSU’s is Boon or Curse for future Indian Economy

Posted in IAS/PCS Topic

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  1. Shristy singh

    Yes, we can say that privatisation of psu’s (public sector undertaking) is a boon for future Indian economy not just in economy but in other sections also. Like
    – It’s helps india economy to upgrade .
    – privatisation alsa provide employment to the unemployed.
    – it help to control in pollution and make us free from globalisation one day .
    – if they go private then cost raise and people move towards private vehicles .
    – As fuel is very precious and get time to made .so by privatisation it help for the use of next generation .
    But government should take care for this sector also .
    Agriculture – cheaper oil and related products like naphtha should bring down fertiliser prices .it should helped specially to the farmers .etc

  2. Tanu Chauhan

    Privatisation of PSU’s is Boon for future Indian Economy ..
    * As it helps government to pay their debt .
    *Private companies do not have any political agenda so they focus more on growth and efficiency and can handle better than the companies owned by govt.
    * It can act as additional source of income for govt.
    * As private companies focus more on service quality and product quality may get better.
    * To stay competitive, private companies may invent new technologies which can help in technological progress .
    * And also it is helpful in present time to improve GDP .
    So , Privatisation of PSU’S may led to improvement and progress in many sectors.

  3. Chetan sharma

    India has mixed economy which have private as well as government sectors. From the early time to till now private sector helps indian government for the development of the country.
    There are some advantages of privatisation:
    1. No political interference: in private sector government can not interfere which decrease the corruption rate and increase excellence in working sector.
    2.Good command on employees: As private sector work for profit only so there is a strict rules in productivity and efficiency in employees.
    3.More salary: private sector gives high payment so that no one shift to abroad for higher wages and brilliant mind work for us not for others.
    4. Customer ease
    Some disadvantaged are:
    1. Less job security.
    2. Emotion less : single moto of private sector is making money. It does not have any emotions for poors and middle class.
    3.not give stable income.
    4.Interested only in reputative degrees like B. Tec, M. Tec etc. Which cause a great competition in technical Colleges.
    We know without privatisation india can not developed fastly but it doesn’t means that private sector rule over government sector. Privatisation is accountable as soon as it doesn’t harm or violate public interest.

  4. Kartik singh

    The transfer of ownership,property or business from the government to private sector is termed as privatisation. India has a mixed economy in which both Private and Public Sectors exist especially in the areas of Banking, Telecom, Road Transport, Education, Healthcare, Manufacturing, etc. If privatisation is used in a right way it will be beneficial for the country


    * The privatisation will lead to a pause in the political interference in PSUs.
    * Less corruption
    * Privatisation creates a situation of competition for public enterprises and they are forced to improve their efficiency.
    * Better industrial relations.
    * Good services
    * The private sector can improve productivity by maintaining efficiency in its operations.
    * Reduction in bureaucracy.
    * Privatisation also provides employment.

    Many developed countries such as france, Germany and United kingdom had already tried hands at it and it had proved successful in most cases. Therefore, according to me it is good initiative and will be a boon for india.

  5. Vasu

    Yes, in my opinion privatisation of PSU’S is Boon for future economy becasue:-
    1. In private sector company give more efforts in work because their earning is depends upon how much they work and when they earn more they give more taxs to the government.
    2.Corruption also can decline from the society because people are working for their own that when the corruption decline the useage or utilisation of black money will also reduced from the society.
    3. Indian is having a much amount of loan and the government is giving a good amount of intrest. So when they privatise the companies the undertaking company will give a good amount of money through that money the government can clear the loan and the amount which is wasting to give intrest will utilise to do development.

    • Apoorva

      Privatisation in it’s purest sense means de nationalisation transfer of state ownership of the assets to the private sector.
      Privatisation of psu is a boon for indian economy..
      *privatisation of psu is beneficial for the growth and sustainability of the state owned enterprise.
      *privatisation may increase numbers of workers and comman man who are shareholders.
      *It Will to control government monopoly and attract more resources from the private sector.
      *It will help in increasing long term jobs and promotes efficiency and open market economy.
      Privatisation is not a easy process as people think in general. Decision is not merely based on economics but several other factors has to be taken into consideration..


    Privatization of PSUs is still a debatable topic in India. It has some advantages and disadvantages both in a particular sector
    1 It may lead to the pause of political interference in PSU as a result corruption, scams, frauds decline.
    2 As privatization is more concerned toward their profit goals, this will bring in increase in productivity and efficiency of employees.
    3 when a particular sector makes profit, the govt also get their shares in total profit .Hence it will leads to economic growth of a country.
    4 It will leads to the better services to the customers. eg: health care system ,education system.
    Despite all these advantages ,there is some disadvantages of privatization.
    1 It is more profit oriented ,less focus on public interest.
    2 There is a steep decline in jobs as most of them want certain qualifications also with additional competitive factors.
    3 Capitalists influence with the help of power and money can be widely seen .eg :power sector .
    4 There is a high employment risk in privatization .eg: during the covid pandemic many people lost their jobs in lockdown.
    Public private partnership model serves for the govt and citizens cannot be completely neglected, many believe that privatization will boost the economy & their is not doubt that it will as their primary motive is profit only but here the question arises does it not violate public interest? So, still there is dilemma that privatization is boon or curse for the country.

  7. Srishty Tyagi

    The PSU’s are the soul of any govt.They serve as an asset to the they promise high return. Apart from serving the govt. they also have a positive impact on the people of the country.
    In India, the people have enormous faith in PSU’s than the private sector.This faith is developed from the fact that they are run by the govt and they won’t dupe them.


    The PPP model of govt is the dream come true because in today’s era of competition it is the need of the hour as recently said by our honourable prime minister too. But, everything has its own pros and cons.


    #independence from politics
    #improvement in employee efficiency
    #more revenue returns
    #high economic growth
    #safe passage to investment
    #better services to the customers


    #less focus on public interest
    #decrease in no. of jobs
    #high employment risk
    #profits to the capitalists
    #income variability

    Therefore, the PPP model of govt would satisfy the ongoing challenges for Indian economy As the name suggest public sector aims to serve the public or the common man. Thus, switching to PPP model ,then govt. would somehow leads to the path of glory in the long run or in the future.

  8. Lavi Gupta

    The Privitisation of PSU’s is transfering of government-owned enterprises in the hands of private players. The concept of privitisation becomes crucial and an indespensable part of an economy after Public Sector model has been witnessed getting diluted.Some of the points given below will help in providing support to the above ideas :
    *Taking a dim view of PSU’s , there is zero political and governmental interventions in privitisation.
    *Competition among the private players is an incentive to excel which PSU’s lack in.
    *Privitisation puts an end to red-tapism as they are more into target-based control rather than procedure-based control.
    *Workload/Burden of work gets reduced through privitisation.
    *There are great possibilities of innovations and creative ideas in private sector making it a good-to-go concept.
    *Efficiency is seen more in private sector as their goals are not dilemmatic unlike PSU’s.
    *Private sector focuses on improving the quality of services .
    Thus, the privitisation of PSU’s will be a boon for future indian economy.

  9. Jyoti Ujjwal

    Generally Privatization means transfer the assets or ownership of any enterprise from public sector to private sector.

    Privatization has played a major role in reviving India’s economy from intensive care unit..
    It is a boom for India in someways because –
    1) lesser interference of political parties.
    2)efficency in work
    3) has helped in economic development of country
    4) more revenue generation.
    5) due to comptetion it helps to get better product .
    6) improvement in infrastructure .
    7) timely completion of project like roads etc.
    8) better maintenance facility.
    9) skills has increased in people due to privatisation

    It is boon for India but it has certain disadvantages like
    * Private sector is working on profit motive it does not work for the public welfare like public sector do .
    * in public sector there is a job security, stability in the income which is not in private sector.
    * as it is going through competition it is increasing inflation
    * lower class will not be able to afford the private services like school, hospitals, railway service etc.
    * increasing number of unemployment

    privatization is hepling India to progress in many sphere so if we want to continue with this model to an extent .we need to make it accountable and government need to focus on lower section of society for their upliftment .

  10. Kunal singh

    As the government is heading towards the privatisation of PSU (public sector undertaking) there are some major reason to doing this:
    The problems faced by PSU’s in india~
    • poor policy making and poor execution.
    • over-stafing.
    • very high operation costs.
    • lack of a realistic and proper pricing policy.
    • lack of vision and motivation for self-improvement.
    • wastage of resources or under-utilization of resources.

    – After independence private sector not ready for playing this role , so government take big step to control all sector under its own .
    –  The reason for setting up PSU’s is to strengthen the core sector of the economy and generate income and employment for the people of india.
    -2nd five year plan focus on industry.
    – but after new industrial policy and after the reform of 1991 Libralisation , globalisation ,privatisation, the 90% stakes are in private person hands and 10% are in public sector.

    There are some of examples of PSU’s or strategic :
    – ISRO
    – arms ammunition of defence equipment.
    – defence aircraft and warship.
    – atomic energy.
    – application of radiation to agriculture , medicine .
    – railways.

    Non strategic :
    – insurance , mining, power distribution companies, discom.

    •With the help of PSU’s govt. Provide employment , jobs.
    •Due to covid-19 impact govt. bounded to enhance the privatisation because of low money, to boost up the economy.

  11. Anuj Singh Yadav

    Privatisation of Public Sector Undertaking (PSU) is not new for Indian economy it start by government mostly after 1991 reforms it help government in many ways as:
    1.It help increase in efficiency of these psu’s because private sector look towards profit more and today time most of the PSU is working in loss.
    2. Less involvement of political class in management filed this reduce chances of corruption and other political interfere.
    3. Boost Indian economy because after selling of PSU government get money and government now investment this money in creation of new assets.
    4 . It open filed for young entrepreneurs they also come in this sector and contribute in nation development.
    5. Now government want to reduce their fiscal deficit by selling these non profitable PSU and investment money in banking, space, agriculture because these have huge potential for development .

    But government also think that selling of PSU only towards contribution of nation development not completely profit oriented because after all they are assets of All Indian.

  12. Samantaka Bhattacharyya

    Privatisation means the transfer of ownership of aseet from the Govt. to the private companies . Recently union govt. of India has started to the process of privatisation of many PSU’s (Public Sector Unit) including Airport Authority Of India (AAI) , Indian Railways and many other units in energy sector . This process of privatisation is associated with some pros and cons .
    Advantages Of Privatisation :

    shifting over the ownership will increase the productivity and efficiency of the overall organisation further it will help to increase the quality of output.

    Middleman plays a key role when govt. owns the organisation this leads to corruption which is cause of deficacy including the direct interference of private company will exclude the middleware corruption.

    Political interference will be less which was a major cause of concern earlier.

    Now govt can sell the subsidised raw material as an input to the private companies in return they will charge the revenue. This will help the govt to achieve its target of 2.5 lakh cr. through this asset boost the GDP and help to decrease the fiscal deficit.

    But every coin has its two side here also some disadvantages are present……

    The amount govt. is expecting to receive through privatisation is not sufficient for the requirement of India. Recently PM modi has announced that India needs 100 lakh cr. Rs. from its infrastucture to meet its need.

    The receiving of expected amount is also a point of concern.

    Privatisation may leads to unemployment becauae of presence of unskilled workers.

    It may create monopoly in market of single company in a particular sector.

    Considering all of this view we can say privatisation is somewhere good for nation but considering the social security of labor class we can say privatisation should contain some time span as govt. proposed this in its recent scheme National Monitisation Pipeline (worth 6lakh Cr. by 2025).

    • Apoorva

      Privatisation in it’s purest sense means de nationalisation transfer of state ownership of the assets to the private sector.
      Privatisation of psu is a boon for indian economy..
      *privatisation of psu is beneficial for the growth and sustainability of the state owned enterprise.
      *privatisation may increase numbers of workers and comman man who are shareholders.
      *It Will to control government monopoly and attract more resources from the private sector.
      *It will help in increasing long term jobs and promotes efficiency and open market economy.
      Privatisation is not a easy process as people think in general. Decision is not merely based on economics but several other factors has to be taken into consideration..

  13. Vanshika gupta

    भारत की अर्थ व्यवस्था मिश्रित अर्थ व्यवस्था है जिसमे निजी और सरकारी दोनो मौजूद हैं। पी सी यू का निजीकरण हमारी अर्थव्यवस्था के लिए जरूरी भी है और इससे हमें कई नुकसान भी है _
    निजी करण ने हमारी अर्थव्यवस्था को बेहतर तरीके से संभालने का प्रयास किया और कुशल श्रमिक प्रदान किए हैं। यह कोई आचार्य की बात नही है कि निजीकरण सिर्फ अपने लाभों के प्रति अधिक मजबूत है। निजीकरण की प्रकिया से जीडीपी में भी वृद्धि होती है और राजकोषीय घाटा भी कमी आई है। सरकार अपने कर्ज़ को चुकाने के लिए निजी कंपनियों को कुछ क्षेत्र जैसे _ हाईवे, रेलवे, बैंक आदि। कुछ समय के लिए देती है । ऐसा करने से हमे वित्त की उपलब्धि तो होती ही हैं साथ में कुशल श्रमिक और अत्यधिक विकास भी उन क्षेत्रों में मिलता है। निजी स्वामित्व बड़ी मात्रा में बेरोजगारों को रोजगार देने में सक्षम हैं।
    निजीकरण के कुछ नुकसान_ सरकार अपनी जिम्मदारियो से भागकर निजीकरण की प्रकिया को अपनाने लगेगी और धार्मिक नीतियों की ओर अधिक बढ़ेगी। निजी स्वामित्व की अपनी कोई स्थायी सरकार नही है हो सकता है लोग निजी कंपनियों में निवेश करे और निजी कंपनियां लोगो के द्वारा किया निवेश लेकर फरार हो जाए । लोग ज्यादतर सरकारी कर्मचारी बनकर काम करना पसंद करते है क्योंकि उसमे लोगो को कोई फरार होने का डर नही होता और वित्त भी अच्छा खासा प्राप्त होता हैं।
    इन सभी दृष्टिकोणों को देखते हुए हमे यह समझना चाहिए की निजीकरण की प्रगति हमारे लिए किस हद तक जरुरी है और किस हद तक हमारे लिए नुकसान का विषय है ।

  14. Ritika Rajput

    पी पी पी माडल मे निजी और साव॔जनिक क्षेत्र दोनो मिलकर काय॔ करते है। भारत के द्वारा इसकी शुरुआत 1991 की LPG नीति द्वारा ही कि जा चुकी है।जिसने सरकार के साथ मिलकर भारत के विकास मे अपना योगदान दिया है ।
    #इसके द्वारा श्रम और पूँजी संसाधन को बढाकर economy मे तेजी से विकास किया जा सकता है।
    #सरकार को अंवसरचना निमाण करने मे सहायक।
    #परियोजनाओ का समय पर पूरा होना।
    # नयी तकनीकी और क्षमताओ का ज्ञान।
    #पूँजीगत अनिशिचता के कारण समसया ।
    #Environmental bodies द्वारा ppp model को महतव ना दिया जाना।
    #govt sector( like .. health or education )के विकास मे योगदान की कमी।

  15. Nishank kumar

    On my point of view for PSU’S is boon for future economy
    1st. it’s means government selling the companies of gov. Hand over To private sector it gave both positive or negative impact on economy
    1.)Negative – government sector companies giving service in comfortable price rate so all people can afford it but now gov handover companies to private sector so now people can think about the buying something or any services because of its price rate ex.- gov. Making aadhar card in minimum price rate or comfortable price rate anyone can afford it but private cafe or centre making it in 250-300 rs etc.

    Positive- benifits of it as a company owners private sector know their. Value because people have large or small company he pressurized to giving best service to citizens for he know the value of customer or citizen trust as a seller u gain the trust of customer can do add types for company means he/she told people about your company or service

    1.improvement in employee capacity of efficiency
    3.jumping in economic growth
    5.then people trusting on private sector more after privatization


    1.lack of public interest because gov. Job
    2.few vacancies of jobs in gov. Sectors
    3.profits to the capitalists
    4.lack of saurces of money manking through of companies

    .Decrease the level of corruption because owner invest the money for the growing company or it benifits is decreases count of black money in country
    Or its help to increase in economic growth
    After the government selling the companies government having good amount he should to pay our country pending loans

  16. Bhavya Yadav

    As in the 2021-22 Budget, the government announced the privatisation of PSU’s, in which ownership, property and business of public sector will be transferred to private sector.
    Since it is a diplomatic topic as it is having advantages and disadvantages as well. Like –
    = Efficiency of work increases.
    = Infrastructure will be improved.
    = Political interference will decrease.
    = Helps in decreasing fiscal deficits.
    = Economic development.
    Disadvantages –
    = Profit oriented.
    = Less public interests.
    = Less job security.
    = Not fixed salaries.

    After considering all the advantages and disadvantages, we can say that it will have both positive and negative impacts but if it works as publicly-oriented instead of only profit oriented, it will boon the economy of the country.

  17. Yamini Sharma

    Privatization refers to the transfer of ownership of government entities to the private sector. It began in india by 1991 LPG policy and has been done on large scale thereafter. The benefits of Privatization in India are :
    – Increased efficiency and effectiveness.
    – Better services and quality products for the consumers.
    – Inflow of foreign direct investments.
    – Private entities have more stringent rules, thus can reduce corruption unlike the public sector undertakings(PSUs).
    – Government’s revenue on non-performing PSUs can be saved and be utilised in other welfare schemes.

    Despite the benefits, there are certain drawbacks in privatizing the PSUs in India which are as follows:
    – Since India is a labour- intensive economy and not capital- intensive, so there would be high risk of unemployment.
    – Private sector is more profit driven, so would increase the class gap in society as only those who have the affordability can be benefitted.
    – People’s faith is more on the government than the private sector, for instance, the farmers are on protest against selling their produce to the private players.
    – Also, the ideal of welfare state as mentioned in our DPSPs would be hindered in the process.
    – There’s more job security in a PSU than a private firm.

    Although India is shifting from mixed-socialist economy to mixed-capitalist economy as it is the need of the hour but even today majority of population look upon the government services provided in the PSUs. Hence, the middle way as introduced by the ‘New Monetisation Pipeline’ should be adopted rather than completely privatizing the PSUs.

  18. Isha Gautam

    The factor which has made PSUs popular and reliable among indians is their service in low price. India is a developing country not everyone here can afford the high-end services offered by private players.
    If PSU is become private then it’s boon is tha:
    As like for taking government job mostly we have to give bribe for the job but in private sector the bribe system is almost exist. And the second reason is also that government work is not completed on time, but the private company completes it’s work on time and in private sector the employees do not take much leaves as like in govt. Sector due to fear of cut their salary. It is also a reason of comlete their work on time

    Now, The curse of privatisation of PSU’s are:
    The employment rate of India will increase. Why? Because as we see during pandemic of covid-19 many of the people lost their job due to the company’s financial crisis. But in public sector people didn’t lost their job and they get advantage of government job because government supports them and the second reason is that in India approx 35% people are below poverty line for those people PSU is boon as we know that in private sector they can’t afford it’s facility as per their need if it becomes private then they did not get good facilities as much they need but in the PSU they get good facilities more than in private sector unit

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