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Essay on Privatization

  • Date Submitted: 06/29/2012 04:04 AM
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Essay on Privatization: It’s Feasibility in the Indian Context
Essay on Privatization: It's Feasibility in the Indian Context


The Indian economy has developed to the extent that public investment is to be considered as the last option when other alternatives are unavailable. But Privatization may not be feasible or practical: in all areas and its viability need's to be studied on a case by case basis

Development of Thought:

Privatization has become a fashionable subject. The literature is full of discussions of methodologies and techniques of privatization and the experience of various countries in undertaking privatization.

However, it is essentiality and efficiency that remains the test for any policy and strategy and hence a pragmatic point of view needs tube; adopted to examine the scope of privatization in the Indian context. Privatization has plenty of scope to grow but it may not be feasible to do away with public enterprises completely.

Various studies show that privatization may not be feasible in organizations such as STC and Coal India Ltd. Privatization hash would entail many problems in actual practice. The very magnitude of public enterprises that need to be privatized will require some kind of selectively approach-but selectivity on what criteria?


Ultimately, what is needed is privatization in the stem of functioning of public enterprises; this is even more important than attempts to privatize ownership in certain cases.

In the last few years the entrepreneurial base in the country has considerably widened and the professional management capabilities have expanded toil significant extent. It is no longer true that the private sector will fight shy of investments involving large magnitudes or long gestation periods.

A reasonable well-developed capital market has come into existence. Both, severe constraint on resources for the public sector and the desirability...


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