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  • Category: Miscellaneous

    Contribution of Nehruvian Economic policy on establishment of Public Sector undertakings

    Post independence saw establishment of many Public Sector undertakings all over India. The Economic policy of Late Jawahar Lal Nehru, the first Prime Minister of Independent India gave more thrust towards establishment of many Public Sector Undertakings. The main objective of setting up of these PSU's was to provide more employment opportunities. The PSU , Indian Telephone Industries Ltd [ITI] was established in the year 1948 is the first PSU after Independence.

    As on date there are 246 Central Public Sector Undertakings and State Public Sector Undertakings functioning all over India. Among these eight PSU's are categorized as Maha Navaratna, 16 PSU's Navaratna, and 74 Miniratna's.

    Are these PSU's kept pace with technology and relevant in the present day business environment?
  • #661092
    It is only because of the public sector role play that we do not suffer the extreme exploitation of the private capitalism.
    The moment public sector disappears from a sector, you will see the devouring and predatory tactics of the private capitalist monopolies.

    For India the public sector has still a lot of relevance at least in main and essential sectors. A very strong consumer protection mechanism is still not in practice in our country. The same MNCs who get punished in countries like US, simply have their way of consumer exploitation in India. Just imagine what will be the state when there is no public sector role?

  • #661100
    If we go back in time to the Nehru era we will find that the formation of public sector organisations was a key element which led to the phenomenal progress of the country.

    We can not equate or compare the private sector with public sector. They have their own premises based on different principles and guidelines.

    The efficiency of private sector is much much superior to the public sector but the job assurance and employment potential of public sector is tremendous. One of the reasons of decreasing jobs in our country is due to the privatisation of these public undertakings.

    One interesting thing I want to share is that a person who silently and obediently works with a meagre salary Rs 12000 per month in a private organisation behaves in a rude and shrewd manner in a public undertaking and does not listen to the higher ups even with a salary of Rs 30000. So there is a difference of culture and environment. Same person will behave differently in different work environment. So it is a well on one side and a ditch on other side.

    Knowledge is power.

  • #661108
    It is unfortunate that public sector undertakings became a heavy burden to the government and many of them are in losses. The main reason for this is the administration and the employees. The administration is very complicated and the people running show can't take decisions easily and quickly. It takes hell lot of time to take some decision. Add to that huge overheads is another big problem. A government organisation gives job guarantee but an employee will never give a guarantee that he will work sincerely.

    Because of these two issues public undertakings are suffering a lot. If an undertaking has to work efficiently means, there should be a link between the productivity and the payments. People always talk a out job guarantee but never talk about their contributions to the organisations.

    Another issue is corruption. The key officers will always try to make money with the powers given to them. They never bother about the cost of production or cost of service verses realisation. They are more worried about their income.

    These are the main reasons which are making these PSUs white elephants.

    always confident

  • #661120
    After the independence of our country, we needed the public undertakings for quick growth of the county in various sectors. It was the vision of Mr Nehru that he stressed upon this aspect and got many of the PSUs in place.

    This immensely help India to develop fast in the industrial arena.

    Thoughts exchanged is knowledge gained.

  • #661137
    Public Sectors undertakings are backbone of the Country's economy. PSU's does a balancing act in controlling the economy. Despite difficulties when compared private sector companies many PSU's proved successful.
    "If you don't understand my silence, you will not understand my words"

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