explain the changing role of public sector after 1991

Before 1991 PSU's were given more importance than private sectors. after introducing privatisation as one of the new economic policies in 1991 PSU's started to be sold to the private sector. Thereby only 3 major PSU's are there. Also the status of navratnas, maharatnas, and miniratnas was introduced
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At the time of Independence that the public sector undertakings would play a major role in attaining certain objectives of the economy either by direct involvement in business or by acting as a channel. The public sector wouldconstruct the backbone for other sectors of the economy and invest inmain areas. The private sector had long gestation periods and was unwilling to invest in projects which required heavy investments. The government then took the burden to develop the skeletal/framework facilities and provide for goods and services necessary for the economy. The Indian economy is in a stage of changeover. The Five Year Plans in the beginning stagesof development gave a lot ofsignificance to the public sector. In late 90's period, the new economic policies laid emphasis on privatisation, liberalisation, and globalisation. The role ofpublic sector was redefined. It was not supposed to play apassive role but to actively involve and compete in the market with other private sector firms in the same field. They were also held responsible for losses and profits on investment. If a public sector was incurring losses repeatedly, it was referred to the Board for Industrial and Financial Reconstruction (BIFR) for complete renovation or closedown. Different committees were set up to learn the functioning of inefficient public sector units with reports on how to bring up their administrative efficiency and profitability. The role of public sector is certainly not what was predicted in the early 60's or 70's.
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As we know that in 1991 India opened up its economy and started the process of globalization. But also, through the same changes in economic policies, we embraced privatization. Up until then in the post-independence period, the public sector was an integral part of the development and progress of our country. The government took the responsibility of investing huge capital in infrastructure and manufacturing industries. The private sector was not equipped to handle such immense projects with heavy capital inflow and long gestation periods. So the central and state governments relied on public enterprises to provide thee services to the economy. The first few Five Year Plans were all designed to promote and safeguard the public sector. But then came the era of privatization and globalization in 1991. The role of public sector companies was reevaluated. Now the public sector was to actively participate in a competitive market with the private enterprises. Inefficiency and uninspired management were not tolerated. The public sector was also held responsible for the huge losses of their companies. And so the role of public sector in our economy saw an overhaul.
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