Question

all the public enterprises in india are wholly owned by the government of india

Answer 1

PSEs) or State owned and managed units have played a strategic role in the Indian economy. The key factors contributing to stronghold of these enterprises are the need of rapid industrialization with equitable distribution of economic wealth and inadequacies of free market. India witnessed a greater degree of state ownership and increased regulation since second plan that envisaged industrialization as a development strategy. By 1980s the poor performance of state-owned companies was acknowledged and various efforts were made to improve performance. In an era of economic reform process initiated since1991, privatization has become a key component of public sector policy of the government. The survival of PSEs now depends upon performance efficiency and profitability.



Definition Of Public Sector Enterprises



Public Sector Enterprises often referred to as government owned undertakings/enterprises or state-owned enterprises are wholly or partly owned and controlled by the government and produce marketable goods and services i.e. PSEs includes industrial and commercial enterprises which are managed and controlled by government. Public sector and PSEs are different from each other. The word public sector is wider and includes all kinds of organization commercial (i.e. PSEs) and non-commercial that are owned partly or fully and effectively managed by Government. Thus Government funded universities, colleges, hospitals, schools are part of public sector but are n