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Question:

Explain the challenges faced by Public Sector Enterprises in India and suggest measures for improvement.

Answer:

  • Challenges:
    • Inefficiency: Lack of competition leads to low productivity.
    • Overstaffing: Excess manpower increases operational costs.
    • Political Interference: Impacts decision-making and profitability.
    • Technological Backwardness: Inability to adopt modern practices.
    Measures for Improvement:
    • Privatization: Selling stakes to private players can enhance efficiency.
    • Professional Management: Appointing experts for better decision-making.
    • Modernization: Investing in technology and training.
    • Autonomy: Reducing bureaucratic interference to promote innovation.
    Public enterprises must strike a balance between achieving social goals and maintaining financial sustainability.


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