Question

Profit of public enterprises reflect​

Answer 1

Explanation:

Public enterprises should not be evaluated on the basis of the same criteria as private enterprises, though, like private enterprises, they must be evaluated. In their eagerness to see the economy take off, the Indian planners opted for the policy of the 'big push' in which the creation of a large number of varied public enterprises played a major role. However, the Indian economy failed to take off as expected, among other reasons, because of the 'drag-effect' caused by the inefficiency of these public enterprises. To realise their original goals, Indian planners will have to reorient their development strategies. They will have to move from a policy of 'big push' to a policy of 'big stick'. That is, from a policy that emphasises the creation of more public enterprises to one that emphasises better utilisation of existing public enterprises through performance evaluation. This paper suggests a way of doing the latter.

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