Public Sector Policy:
Although public sector has been central to our philosophy of development, a number of problems have begun in the public enterprises. Serious problems are observed in the insufficient growth in productivity, poor project management, project management and over-employment. The result is that many of the public enterprises have been a burden rather then being an asset to the Government. It is high time for the government to adopt a new approach to public enterprises.
The priority areas for growth of public enterprises in the future will be the following:
- Essential infrastructure
- Essential goods and services, exploration and exploitation of the oil and mineral resources.
- Technological development, building of manufacturing capabilities, in areas which are crucial in the long term development of the economy and where private sector investment is not adequate.
- The public sector will also not be barred from entering areas not specifically reserved for it. Government will also strengthen those public enterprises which fall in the reserved areas of operation or are in high priority areas or are generating good or reasonable profits.
Most political decisions have serious economic and business implications. For e.g. prohibition of gutkha is a political decision, but it has affected entire gutkha industry. Thus the economic policy of the ruling party is very important.
India is the largest democracy in the world with more than 50 years of successful working. Democratic system has many merits and is treated as the best political system as this system provides growth facilities to both – private as well as public sector. Adequate freedom is given to both to grow. Various facilities and concessions are offered to business enterprises to expand their business activities. in general, democratic system is proved successful from past many years.
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