An Analysis Of Problems In Public Sector Enterprises In India

  • Dr. Virendra Singh Professor, College of Commerce and Management, IIMT University, Meerut
  • Mr. Sachin Yadav Assistant Professor, College of Commerce and Management IIMT University, Meerut


In the history of planning in the country, over the last six decades, there has been a definite shift in the assigned role of public enterprises in the country through various Five Year Plans from attaining the commanding heights in the national economy and easing out private sector to the opening up, 'liberalization' and 'globalization’. It has been a perennial problem for the policy makers to set the role of the public sector in the Indian economy and it would continue to be so. The organization and management of the public sector enterprises has been on 'trial and error' ever since independence in the country. Initially, the enterprises were organized as departmental undertakings owing to their simplicity of operations and management. Then came a time when the government company form was most prevalent. Following the developments in the international field, particularly in England, corporate form was adopted in India too. And a host of corporation was created, both sectoral and multipurpose as well as development corporations. Lastly, joint ventures came on the scene again taking a cue from the development in the world. The management has all along been a problem to tackle. In the first place, there has been a consistent dearth of managerial skills in the country, both at the initial stages as well in recent past. This paper is aims at:

  • It deals with the problems associated with the Public Sector Enterprises.
  • It deals with the understanding of the causes of the expansion of the Public Sector.
  • Makes an understanding of the limitations attached with the private sector due to which the Public sector has emerged.

Key Words: Public Sector, Private Enterprises


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