Privatistion of Public Sector Undertakings in India: Is it Justified?

Posted: 7 Jun 2008 Last revised: 12 Apr 2016


This paper examines various causes for privatisation in India. Five major dimensions, which are changes in International and domestic politics, Performance of Public Sector Undertakings, Magnitude of fiscal compulsion and external debt, External pressure of the donors and Inherent efficiency of private sector companies, were taken for the study to find out whether or not there have been sufficient existence of reasons to substantiate the privatisation programme in the country. The analyses and discussion prove that there are viable reasons for the government why they implemented the privatisation and why they want to continue the same in the country. The paper calls for further research on comparative performance of enterprises in their pre-privatisation and post privatisation era in order to significantly substantiate the reasons for privatisation in the country.

Keywords: Privatisation, public sector undertakings, fiscal compulsion, external debt, Private sector companies

JEL Classification: L33, H22, H68, P12

Suggested Citation

Jesiah, Selvam, Privatistion of Public Sector Undertakings in India: Is it Justified?. Available at SSRN:

Selvam Jesiah (Contact Author)

SRIHER ( email )

Porur, Chennai 600116
Tamil Nadu

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