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07 MAR,2021 | MEDC
In most modern economies, privatization plays a significant role in improving the competencies of enterprises. In India, a strategic privatization will facilitate resource efficiency enhancement at a time when most PSUs are in the red. However, a lot depends on the implementation. There are some real risks to the privatization process, but there is also a pressing need to raise resources to fund spending on an economy recovering from the pandemic. Not all these resources can be raised solely by the government, and a strategic private sector participation is now essential. Central PSEs were initially created to fill gaps in the economy where the private sector was hesitant to invest. However, with the changing structure of the economy, this approach is becoming increasingly redundant. The private sector needs to be roped into the economic development process in a structured manner – one which will lead to a win-win situation for all stakeholders, especially the nation as a whole.
*Photo Credit: Google
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